Island Health said, in a statement released Thursday morning, that anticipated federal and state funding cuts could impact as many as 6,000 Medicaid patients here in the coming years.
Island Health, which operates Island Hospital and several medical clinics in Anacortes, said as many as 900 Medicaid (Apple Health) patients could lose coverage starting in 2027. Many other Apple Health enrollees may face new eligibility requirements early in 2027. Medicaid is a key funding source for Island Health.
“Not only will people in our community lose coverage and access to care, but the negative financial impacts of this bill to Island Health will be in the millions,” said Chief Financial Officer Shannon Fernandez, MHA.
“We are facing a significant loss in Medicaid reimbursements, reductions in SNAP-related support, and an increase in uncompensated care.”
Island Health noted, in its statement, that federal cuts in President Trump’s One Big Beautiful Bill Act, as well as other cuts and new state taxes represent a significant financial challenge for health care providers across the state.
“Once we fully understand the implications of the state and federal cuts and taxes, the Island Health Board of Commissioners will collaborate closely with our senior leadership team to chart the best path forward for our patients and our community,” said Board President Lynne Lang, PhD.
“We are committed to making responsible decisions that protect access to care while preserving the long-term sustainability of our healthcare system."
Island Health said it is currently evaluating how these changes will affect their operations. “While some financial effects will be felt within the next year, the most significant cuts are scheduled to take effect in 2027, with continued reductions in the years that follow.”
Island Health said it will continue to advocate for fair and adequate funding for rural healthcare and will work to support patients impacted by these changes.