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Proposed Medicaid Cuts | Update as of May 16th

 As of May 16, 2025, House Republicans are advancing a significant budget proposal known as the “One Big Beautiful Bill,” which includes substantial cuts to Medicaid funding. The Congressional Budget Office estimates that these reductions could lead to approximately 8.6 million Americans losing their health insurance coverage 

Key Provisions of the Proposed Medicaid Cuts

  • Work Requirements: The bill introduces mandatory work requirements for certain Medicaid recipients, particularly targeting childless adults. This measure is projected to reduce Medicaid coverage, affecting at least 10.3 million people.

  • Funding Reductions: The proposal outlines $715 billion in Medicaid cuts over the next decade, focusing on increasing user fees, enforcing work requirements, reducing funding for undocumented immigrants, and restricting payments to abortion providers, including Planned Parenthood.

  • Impact on Vulnerable Populations: Children, low-income millennials, and residents in Western and Northeastern states are most at risk. The average Medicaid recipient is a 32-year-old low-income adult, often unemployed or out of the labor force, and disproportionately female, single, and from minority backgrounds.

Political Landscape and Opposition

The proposed Medicaid cuts have sparked division within the Republican Party. Conservative lawmakers, especially the Freedom Caucus, are demanding steeper Medicaid cuts and immediate implementation of work requirements for aid recipients. Simultaneously, some moderate Republicans express concern over the potential impact on vulnerable populations.

Democrats and healthcare advocates argue that the proposed changes could significantly reduce health insurance and food aid access, disproportionately affecting low-income individuals and families. The bill's passage may be jeopardized if internal disputes remain unresolved before an anticipated full House vote.

Potential State-Level Impacts

If enacted, the Medicaid cuts would necessitate states to either increase their own spending to maintain current coverage levels or reduce services. For instance, federal cuts of $880 billion over 10 years would represent 29% of state-financed Medicaid spending per resident. States could opt to raise taxes to offset the federal Medicaid cuts, with $88 billion per year in federal Medicaid cuts representing 6% of state taxes per resident nationwide.

The proposed legislation is currently under consideration in the House, with debates ongoing regarding its provisions and potential impacts. The outcome will significantly influence the future of Medicaid and the healthcare coverage of millions of Americans. 



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