House Republicans are adjusting their plans regarding Medicaid cuts in response to pushback from moderate GOP lawmakers and a new report from the Congressional Budget Office. The CBO report estimates that millions of Americans could lose Medicaid coverage under the proposed cost-saving measures. The Republicans aim to find $1.5 trillion in cuts across various federal programs to offset $4.5 trillion in tax breaks. The CBO report highlights potential decreases in Medicaid enrollment and an increase in the uninsured population. Speaker Mike Johnson faces uncertainty in passing the tax breaks bill by Memorial Day, as lawmakers are concerned about economic impacts and the need to address the nation’s debt and deficits. While Republicans are focused on extending expiring tax breaks, they are considering program cuts elsewhere. Johnson is working with GOP lawmakers, particularly moderates, to navigate the Medicaid changes and address concerns about steep cuts. Some GOP members suggest alternatives such as work requirements for Medicaid recipients and stricter eligibility verification. Both moderate and conservative Republicans are debating the extent of Medicaid cuts, with some advocating for steeper reductions to control deficits. Medicaid is a joint program serving 71 million adults, and potential changes include adjusting federal government payments for enrollees’ healthcare costs.
They are contemplating implementing a cap on federal spending per person in Medicaid, but this idea is facing dwindling support from lawmakers. While these changes could save billions of dollars, around 10 million individuals may lose their Medicaid coverage, as per the CBO. Although this particular proposal seems unlikely to move forward, other Medicaid adjustments are still being considered by Republicans. This includes potentially restricting a state’s tax on healthcare providers to increase federal payments, which could lead to significant cost savings but may also result in approximately 8 million people losing their coverage, according to the report.
