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Home » What is a Medicaid Cut? Senate GOP’s Proposal Could Cost Approximately $800 Million
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What is a Medicaid Cut? Senate GOP’s Proposal Could Cost Approximately $800 Million

June 10, 20255 Mins Read
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When do Medicaid cuts actually take effect?

That’s a staggering $800 billion question for Senate Republicans as they draft their own version of the tax and spending bill.

Administrators and senators defending this bill have rallied around the claim that no benefits will be slashed; instead, only those deemed undeserving will experience cuts—namely, undocumented immigrants and “healthy” individuals who shouldn’t qualify for Medicaid.

“This bill safeguards the program and the social safety net while introducing a more pragmatic approach,” said Russell Vert, Director of Management and Budget, in a recent CNN interview. “No one will see their benefits diminished as a result.”

Among its numerous provisions, the House bill mandates that individuals unable to demonstrate 80 hours of work per month must reject Medicaid. Additionally, it prohibits states from using funding to cover undocumented immigrants and denies benefits to certain legally-residing immigrants currently entitled to coverage.

According to the nonpartisan Congressional Budget Office (CBO), this law would lead to approximately 11 million people losing health insurance over the next decade.

Regulations surrounding Medicaid alone could result in 7.8 million individuals losing their insurance. These losses translate to savings of hundreds of billions for the federal government.

However, GOP lawmakers and administration officials contend that the law protects Medicaid for the elderly and disabled who are deemed “worthy,” while ensuring that others provide proof of their necessity.

Mehmet Oz, the administration’s head of Medicare and Medicaid, addressed reporters following a closed meeting with GOP Senators.

In a later interview on Fox Business, Oz elaborated, saying, “Get out there, take entry-level jobs, join the workforce, and prove your worth.” He emphasized the need for agency in one’s life.

Republicans are cautious about backlash concerning healthcare cuts and are actively reshaping the debate and narrative. The backlash from voters over attempts to repeal Obamacare in 2017 significantly harmed the GOP and led to losses in the 2018 midterms.

“This is a complete fabrication from the Democrats,” stated Sen. Bill Cassidy (R-La.). He posted on social platform X. “No one is losing their healthcare. We’re merely accounting for approximately 1.4 million undocumented immigrants on Medicaid.”

While most undocumented immigrants do not qualify for Medicaid at the federal level, some blue states are expanding healthcare access. The proposed law would penalize those states continuing to provide coverage by reducing federal matching rates.

In a CNBC interview on Thursday, Sen. James Lankford (R-Okla.) asserted that anyone losing Medicaid coverage would transition to employer-sponsored healthcare.

“We’re not forcing people out of Medicaid; we’re shifting them to employer-provided coverage. Yes, there are 10 million individuals not on Medicaid who are receiving employer-sponsored healthcare,” Lankford clarified.

Nonetheless, the CBO indicates that “most people losing Medicaid will not seamlessly transition to employment-based coverage.”

Many Republican senators have expressed concerns regarding some provisions in the Medicaid regulations, with some voicing disapproval of measures that could be perceived as cuts.

Generally, though, they maintain that loss of coverage isn’t fundamentally concerning.

“We must [accept this],” remarked Sen. Jim Justice (R-W.Va.).

“This is necessary. Ultimately, we shouldn’t defend programs meant for those who are abusing the system or are unqualified.”

Sen. Josh Hawley (R-Mo.) expressed concern about how the bill could affect rural hospitals and has pledged to withhold support if it leads to cuts in Medicaid benefits.

But what constitutes profit reduction?

“If my state determines that cuts are necessitated by legislative modifications in the House bill, then that’s an issue,” Hawley told The Hill.

Missouri is home to 1.3 million Medicaid beneficiaries, but Hawley mentioned he is uncertain how many would be impacted by the work requirements.

“I’m totally fine with cutting off benefits for healthy individuals who aren’t working… I’m completely for that. But I worry about losing coverage for the lawful residents and citizens of my state who are working,” he stated.

Hawley noted that President Trump has consistently pushed back against Medicaid cuts despite his support for the House version in recent discussions about the “big beautiful bill.”

Health experts argue that the implications of these cuts extend far beyond the small segments of the population Republicans reference.

Work requirements could introduce additional bureaucratic hurdles for individuals trying to prove they meet the standards.

“People losing coverage are not those who don’t work; they often include individuals who should qualify for exemptions but struggle to navigate the complex reporting systems,” experts warn.

While the law includes several exemptions such as for caregivers, it fails to clearly define what qualifies or how beneficiaries can prove their eligibility. Park indicated that there’s no mandate for states to automatically exempt individuals.

No matter how Republicans frame it, Park asserted, “These are significant Medicaid cuts. Millions of low-income individuals will lose their coverage.”

“These cuts will impact everyone across the Medicaid spectrum—not just the expansion group but also children, seniors, and individuals with disabilities,” he added. “This will create a substantial ripple effect throughout the entire healthcare system.”

Source: thehill.com

Approximately Cost Cut GOPs Medicaid million proposal Senate
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