“The GOP’s Healthcare Budget Plan Unveiled – What You Need to Know”
The House narrowly passed a budget resolution on Tuesday, aiming to extend the 2017 tax cuts and achieve $2 trillion in federal savings. Although the Senate’s approval is still pending, the resolution kickstarts a process that could lead to significant changes in Medicaid, the health insurance program covering nearly one-fifth of Americans.
The budget resolution tasks the Energy and Commerce Committee with identifying $880 billion in savings and spending reductions within its jurisdiction. With subcommittees focusing on various aspects of the economy, including health, the committee plays a key role in overseeing federal programs.
While President Donald Trump has emphasized his opposition to Medicare cuts, experts speculate that Medicaid could face spending reductions. House Speaker Mike Johnson expressed confidence that Republicans could achieve Medicaid cost savings without cutting coverage for eligible individuals.
Medicaid, a government health program for low-income and disabled individuals, currently serves around 72 million people. It covers a range of services, from low-income pregnant women to nursing home care for seniors, with some individuals eligible for both Medicare and Medicaid.
Proposals by congressional Republicans, such as implementing work requirements for Medicaid enrollees, aim to encourage employment among beneficiaries and potentially reduce federal spending. States have the authority to administer Medicaid programs, with some opting for work requirements to ensure eligibility.
Georgia stands as the sole state with a work requirement for Medicaid enrollees, with over 6,900 residents covered under the Pathways to Coverage program. The state plans to adjust eligibility checks and exemptions, including eliminating work-reporting requirements for certain groups and streamlining verification processes.
As discussions continue around potential changes to Medicaid and the healthcare budget plan, it remains crucial to stay informed about developments that could impact millions of Americans.
According to KFF, a health policy nonprofit, many individuals on Medicaid are employed either full- or part-time, while others may qualify for an exemption from work requirements as caregivers or students. Only 8% were not working due to reasons such as inability to find work, retirement, or other causes.
Republican leaders suggest that significant savings can be achieved by cracking down on fraud and waste in Medicaid, rather than cutting benefits. House Speaker Mike Johnson highlighted the prevalence of fraud in Medicaid, estimating that it costs taxpayers billions annually. In efforts to combat fraud, Medicaid fraud units across the country investigate cases and pursue legal actions. In 2023 alone, these units secured over 1,100 convictions and recovered $1.2 billion.
One proposed change to Medicaid funding includes implementing a per-capita cap, which would provide states with a fixed amount for each enrollee. However, this proposal could lead to a substantial financial burden on state budgets, especially considering Medicaid’s role in covering long-term care costs for low-income seniors and children.
Medicaid cuts could have significant impacts on states, as Medicaid currently contributes a substantial portion of federal funding to state budgets. The potential reduction in Medicaid spending may force states to make tough decisions, such as cutting back on services or seeking additional revenue sources.
Additionally, there is a possibility of cuts to the Affordable Care Act’s Medicaid expansion, which has been adopted by the majority of states. Under this expansion, the federal government covers 90% of the costs, leaving states responsible for the remaining share.
Republicans have circulated a memo proposing that the federal government could achieve cost savings by reducing Medicaid expansion funding to the regular Medicaid matching rate of approximately 57%. If this proposition were to be implemented, it is highly likely that the majority, if not all, of the states that expanded Medicaid would eventually discontinue their expansions due to the significant financial burden this would entail, according to a policy brief by Georgetown CCF. This article has been updated to correct a typo and was originally featured on USA TODAY under the title: “House Republicans’ budget could impact Medicaid. Here’s how.”
