Worry grows about trickle-down effect of shutdown, Medicaid cuts

Tom George Image
Friday, October 3, 2025
Worry grows about trickle-down effect of shutdown, Medicaid cuts

DURHAM, N.C. (WTVD) -- The ongoing government shutdown is likely to extend into next week at least, and unless a deal is reached, some federal jobs are on the line, and some are also worried about what it will mean for healthcare.

As the federal shutdown continues, the White House is warning of the potential for thousands of government layoffs. Democratic Congresswoman Deborah Ross says she thinks that would be illegal for the Trump administration to do during a shutdown.

She's also concerned about the effects of potential cuts to Medicaid.

"I'm very concerned in particular about Medicaid and about our rural hospitals, because the two things that are on the block right now, again, are these higher payments through the exchange and some of our Medicaid benefits. And so we know that our rural hospitals are really hanging by a thread," Ross said.

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Medicaid cuts are already a concern for local clinics such as Circle Therapy Occupational Therapy, which covers from Lexington to Mebane.

Debb Dorsett said their reimbursement cut rate is already up to 8% instead of 3%.

"When you look at when they have nothing left to cut, then your choices are, do I cut medical benefits for my staff? Do I cut the wage that I pay the therapists that serve these kids? Do I limit how many Medicaid children my practice will serve and reduce access to Medicaid programs?" she said.

Dorsett said she believes rhetoric about Medicaid funding possibly going to undocumented immigrants is misguided and misses the point that this is about local funding for a program many rely on in the community.

"I think that the most important thing right now is people have talked about what side they're on. And there's been a lot of talk about political parties and stuff. And my thought to that is occupational therapy is on the side of children. It's on the side of families. It's on the side of like helping people be able to enrich their lives by having success in those daily tasks," she said.

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