Numerous House Republicans cautioned that the suggested Medicaid cuts would not align with the Senate’s version of the tax and spending bill due to their abrupt nature.
A group of 15 concerned Republicans, led by Rep. David Valadao (R-Calif.), reached out to Senate Majority Leader John Thune (R-S.D.) and House Speaker Mike Johnson (R-La.) advocating for the House’s approach to Medicaid reform, which contradicts the Senate Finance Committee’s proposal.
“Safeguarding Medicaid is vital for the vulnerable populations we are elected to represent. Thus, we cannot endorse a final bill that jeopardizes the stability of hospitals and healthcare providers,” the representative stated. “The House’s approach embodies more sensible and compassionate standards and should be maintained in the final proposal.”
The Senate Finance Committee’s draft seeks to tighten regulations on two methods to enhance state oversight payments and Medicaid provider taxes. These limitations have raised significant concerns among rural hospitals, a key demographic for senators.
Republicans are aiming for a bold July 4 deadline to finalize the bill and present it to President Trump for signing into law.
A letter from legislators who supported a bill proposing $700 billion in Medicaid cuts over the next decade indicates that critical issues still need resolution for the bill to advance.
Contrary to the House version, the Senate Treasury Committee’s draft proposes a notable reduction in taxes that can be collected from healthcare providers. States will tax these providers to facilitate federal Medicaid contributions, which will be returned to hospitals as increased rebates.
This legislation effectively caps provider taxes at 3.5% by 2031, down from the current 6%, but only in states that expanded Medicaid under the Affordable Care Act. The cap will decrease gradually by 0.5% each year starting in 2027.
States that did not expand Medicaid are not allowed to impose new taxes, although their tax rates will remain frozen at current levels, similar to the state-level versions passed. The lower cap does not include nursing homes or intermediate care facilities.
“Throughout the budget process, we have consistently reiterated our dedication to ensuring that federal spending cuts do not come at the expense of our most vulnerable citizens. We will reaffirm this commitment to those we represent in Washington,” the members stated.
They also voiced concerns regarding a “timeline of expedited implementation” and modifications to work requirements for adults with dependents. The House bill introduces work requirements for Medicaid registrants aged 19-64 but exempts those with dependent children, with these requirements set to commence in 2027.
In the quest for additional cuts, the Senate version intends to apply these requirements to parents with children over the age of 14.
In a statement to The Hill, Justin Chelmoll, a spokesperson for the Democratic Congressional Campaign Committee, remarked on the letter’s implications.
“Don’t pull the wool over our eyes. These so-called moderates have already voted for the largest cuts to Medicaid in American history, and when the moment arrives, they will once again yield to the party leaders in D.C. to grant billionaire donors significant tax breaks,” he stated.
Source: thehill.com