Recently, the House of Representatives approved a Donald Trump budget plan. This raised concerns over possible cuts to Medicaid and their impact on millions of Americans that rely on it.
House Energy and Commerce Committee is responsible for Medicaid and must now identify $880 billion of spending reductions over the next decade. There is still a lot of disagreement about how these large savings will be achieved, especially since the government has promised to maintain essential services for seniors and families.
Medicaid funding is important
NYU Langone Health has estimated that Medicaid is the primary healthcare provider for approximately 24% of Americans. According to the Centers for Medicare & Medicaid Services, over 72,000,000 Americans were covered by Medicaid in October of last year.
Medicaid cuts could have a variety of negative consequences. These include restricted access to health care services, and tighter criteria to qualify for coverage. Cuts to Medicaid could affect the well-being of low-income families and children as well as pregnant women, senior citizens, people with disabilities, and seniors.
Budget Impacts and Key Budget Information
The budget plan calls for $2 trillion worth of spending reductions, yet it does not mention Medicaid specifically. Instead, the House Energy and Commerce Committee is given the responsibility of cutting $880 Billion in expenditures over the next 10 years. This includes several programs and increases uncertainty regarding the true impact on Medicaid.
Donald Trump has publicly assured that Medicaid will not be affected. However, it is up to the House Energy and Commerce Committee to find these savings. Medicaid is included, as well as Medicare and the Children’s Health Insurance Program.
Analysis by The New York Times, even if the committee were to eliminate all non-healthcare-related spending, it would still fall short of the $880 billion target by more than $600 billion. The disparity between these two numbers highlights how difficult it can be to achieve the mandatory cuts without affecting the core services of healthcare.
All Democrats and only one Republican opposed the measure. The House passed it by just 217-214. Despite assurances from GOP leaders that certain Medicaid services would remain protected, and federal payments maintained, this division is a reflection of deep-seated fears about Medicaid cuts. POLITICO.
The concerns expressed by the attendees at the meeting are discussed with legislators POLITICO This pledge was made by GOP leaders to protect certain Medicaid services as well as maintain the existing share of federal funds for the Medicaid program. The assurances were likely meant to win over hesitant Republicans. But the way to achieve the necessary spending cuts is still unclear.
Republicans are in favor of shifting more Medicaid costs from the federal government to states. The federal government is alleged to have covered up to 90% of costs in some states for Affordable Care Act expansion enrollees.
As per POLITICOThe GOP has also tried to calm down Republicans who are concerned by stating that they will focus their efforts on eliminating waste, fraud and abuse within the Medicaid program, instead of cutting benefits. The strategy is designed to alleviate concerns that healthcare will be compromised for those who are most vulnerable.
Reactions & Perspectives
Democratic Rep. Alexandria Ocasio-Cortez posted On X, stating that “The Republican budget is fundamentally flawed.” An $880 billion cut is an attack on Medicaid, not ‘waste,’ ‘fraud,’ and “abuse.” Let’s be clear—anyone who votes for this budget is voting to cut Medicaid.”
She further elaborated, “The order that’s been sent down here is ‘find $880 billion,’ not ‘there is $880 billion of waste, fraud and abuse,’ it’s ‘find $880 billion.’ We haven’t heard any concrete numbers about the waste identified.
Speaker Mike Johnson Addressed concerns Monday, February 24. “Look, everyone needs to understand the resolution is only the start of the process. The resolution doesn’t mention Medicaid. “The legislation will come later. This is an important start.”
Johnson added: Medicaid is a huge problem because there are a great deal of frauds, wastages and abuses. Everyone knows it. All of us know this intuitively. We all know it intuitively. We’re talking to root out fraud, abuse, and waste. No matter which party you belong to, it’s important that you support this because it will save your money and preserve the programs for those who need them.
Medicaid funding: A New Direction
Uncertainty remains about the ultimate effect of Medicaid funding. It is now up to the House Energy and Commerce Committee to decide how they will achieve their savings mandate. Senate approval of the budget is required, as well as subsequent legislation from both chambers to implement it. The debates about state Medicaid policies and federal healthcare policy that are ongoing will have a major impact on the future funding for Medicaid and access to healthcare.