House Republicans just put forward a plan to cut almost $880 billion from Medicaid, which is a huge deal. This plan is part of what they’re calling former President Trump’s new economic vision—the “big, beautiful bill.” The idea is to make those cuts so they can pay for $4.5 trillion in tax breaks, mostly aimed at middle-class families.
This isn’t just a small change—it’s one of the biggest fights over healthcare we’ve seen since Republicans tried to repeal Obamacare back in 2017. Republicans say these cuts will clean up Medicaid by getting rid of “waste, fraud, and abuse.” But Democrats are warning that if this passes, millions of people could lose their healthcare coverage.
Millions Could Lose Coverage, Say Experts and Democrats
According to a report from the Congressional Budget Office (CBO)—which tries to stay neutral—about 8.6 million Americans might lose their health insurance over the next decade if this plan becomes law. That’s a lot of people.
On the Republican side, Kentucky’s Rep. Brett Guthrie says these cuts will help bring back tax breaks for the middle class and keep promises made to hardworking Americans. But Democrats aren’t buying it. Rep. Frank Pallone from New Jersey calls the plan “shameful,” warning it could close hospitals, hike insurance prices, and leave seniors without important care.
Even inside the GOP, there’s some disagreement. Some Republicans told House Speaker Mike Johnson that cutting Medicaid could hurt voters who depend on it. And get this—even Trump had promised before not to cut Medicaid. Missouri Senator Josh Hawley wrote that this plan is “morally wrong and politically suicidal.” So, it’s not totally a done deal yet.
What the Plan Means for Medicaid Users
The bill wants to add some tough new rules for Medicaid, which right now helps over 70 million Americans with free or low-cost healthcare. Here’s what they want to change:
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Able-bodied adults without kids would have to work, study, or volunteer 80 hours a month to qualify.
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States would have to check eligibility twice a year instead of once.
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There would be stricter income limits for those using Obamacare subsidies.
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People who own homes worth more than $1 million might not qualify for Medicaid anymore.
Plus, some families making just over the poverty line (about $32,000 a year for four people) could have to pay up to $35 for certain Medicaid services. This won’t apply to emergency visits, prenatal care, pediatric, or regular doctor checkups, though.
The bill also hits states that let undocumented immigrants use Medicaid by cutting 10% of their federal funding. It ends a 5% funding increase that states got during COVID-19 and closes some loopholes states have been using to get more Medicaid money.
On top of all this, the plan wants to roll back some of Biden’s green energy programs, cutting loans and speeding up permits for oil and gas projects. So it’s not just healthcare that’s getting shaken up here.
