House Republicans Consider Cuts to Medicaid

Jan. 14, 2025
Families USA responds with a new publication on why Medicaid is critical for 80 million people

POLITICO's Ben Leonard, Meredith Lee Hill, and Kelsey Tamborrino reported on January 10 that "House Republicans are passing around a "menu" of more than $5 trillion in cuts they could use to bankroll President-elect Donald Trump's top priorities this year, including tax cuts and border security."

POLITICO reportedly obtained a list of potential spending offsets, which includes changes to Medicare, reducing welfare, and "reimagining" the Affordable Care Act (ACA). POLITICO's reporters noted that savings would add up to as much as $5.7 trillion over 10 years. "The policy menu suggests Republicans could capture major savings from Medicaid — up to an estimated $2.3 trillion. The list includes so-called per-capita caps on Medicaid for states, meaning the program would be paid for based on population instead of being an open-ended entitlement, and would institute work requirements in the program."

The reporters highlighted that the changes suggest $46 billion in savings from ACA health insurance plan subsidies. Republicans are also considering repealing significant Biden administration healthcare rules, which could involve ending a minimum staffing levels rule at nursing homes.

In response to potential cuts, Families USA announced in a press brief on January 14 their publication of Medicaid Matters: To People, Our Economy and the Health Care System that outlines how Medicaid is a critical lifeline for 80 million people.

"As the largest source of public health coverage, Medicaid is essential to safeguarding the financial stability and well-being of millions of Americans," the press release stated. Families USA recently shared a letter, co-signed by 344 organizations, urging Congress to protect and strengthen Medicaid.

"Make no mistake, stripping away health insurance from our nation's families to fund tax cuts for the wealthy and big corporations is not what the American people just voted for. Voters across the political spectrum want costs to be lowered, including healthcare," Sophia Tripoli, Families USA's senior director of health policy, said in a statement.

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