In a recent nonpartisan analysis, it was revealed that millions of Americans stand to lose their Medicaid health insurance coverage. This is a result of several proposals by Republican Congress members aimed at reducing spending to back President Donald Trump‘s tax cuts and domestic policy agenda.
What Happened: The Congressional Budget Office (CBO) performed an analysis at the request of Sen. Ron Wyden (D-Oregon) and Rep. Frank Pallone (D-N.J.) The analysis disclosed that millions could lose Medicaid coverage under different proposals put forth by Congressional Republicans.
The CBO analyzed five scenarios reportedly considered by Republicans, estimating Medicaid coverage losses between 2.3 million and 8.6 million people. The proposals include reducing federal funding for states that expanded Medicaid under the Affordable Care Act, a move that could save $710 billion but would eliminate coverage for 5.5 million enrollees by 2034. Out of that, 2.4 million will be left without health insurance.
Another proposal involves eliminating state provider taxes, which, according to the CBO, would save the federal government $668 billion but result in 8.6 million people losing Medicaid coverage. It would result in 3.9 million more people being uninsured by 2034.
Notably, Wyden and Pallone did not request a CBO analysis of a proposed Medicaid work requirement for non-disabled enrollees, which House Speaker Mike Johnson says is still under consideration. Republicans have also suggested more frequent eligibility checks and cutting coverage for noncitizens, reported USA Today.
Supporters argue that a work requirement would encourage employment and reduce taxpayer costs, with a 2023 CBO estimate projecting $109 billion in savings over ten years.
Why It Matters: President Donald Trump had previously stated in an interview with TIME Magazine that he would veto any bill that trims Social Security or federal health programs, including Medicaid.
Meanwhile, Rep. Don Bacon (R-Neb.) had expressed his support for $500 billion in Medicaid cuts. This comes as congressional Republicans are striving to preserve the 2017 Tax Cuts and Jobs Act. The proposed cuts include imposing work requirements for able-bodied adults without children, removing undocumented migrants from Medicaid coverage, and requiring annual audits to ensure only eligible individuals receive Medicaid.
However, on Tuesday, House Speaker Mike Johnson stated that Republicans have ruled out cutting federal funding to states that expanded Medicaid and seemed disinclined to support per-capita caps for those states.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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