GOP's Medicaid plan may drop millions from coverage, add work rules, raise fees, and reduce funding to states, sparking major debate in Congress.


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Millions at risk as Republicans push for savings while avoiding deeper Medicaid cuts.

A New Medicaid Plan with Major Impacts 🏥

House Republicans have released a new healthcare proposal that may leave millions of low-income Americans without Medicaid coverage or facing increased out-of-pocket costs. While the plan avoids the most drastic cuts to the program, it still aims to save nearly $880 billion over ten years—primarily by reshaping how Medicaid works.

What the Proposal Includes

  • No major structural overhaul of Medicaid, avoiding deeper cuts pushed by hardline conservatives

  • Work requirements for childless adults: must work 80 hours/month to stay enrolled

  • Increased paperwork and verification checks could remove 2.3 million people from coverage

  • Higher co-payments for those earning above the poverty line (e.g., $35 per visit)

  • Tightened eligibility rules, making it harder for people to stay enrolled or re-enroll

Work Requirement Sparks Debate

The proposal’s work requirement mirrors a 2018 Arkansas rule that quickly dropped 18,000 people from Medicaid rolls. While some Senate Republicans support this idea, critics argue it adds unnecessary barriers for vulnerable adults.

Even former President Donald Trump, who once opposed cuts labeled as “Medicaid reductions,” has backed this measure—highlighting its growing support among conservatives.

Medicaid Redesign Could Burden States

One of the most controversial aspects targets how states fund their Medicaid programs. The plan:

  • Caps state healthcare provider taxes to their current levels

  • Reduces federal funding to states covering undocumented immigrants

  • Cuts special payment arrangements that allowed states to get extra federal funds

This could especially impact states like California, New York, and Washington, where local programs provide care to undocumented residents.

Special Focus on Cost Savings

  • $912 billion in total savings expected over a decade

  • $715 billion from Medicaid and ACA reforms

  • Other savings would come from repealing environmental rules, boosting energy tax revenues, and reclaiming unused green funding

These cuts are central to funding other Republican priorities such as military expansion and tax relief.

Other Major Changes in the Bill

  • Shorter enrollment windows for Obamacare plans

  • More rigorous income verification for marketplace coverage

  • Restricted renewals and access for DACA recipients

  • Ban on Medicaid funding for providers offering abortions, such as Planned Parenthood

  • Elimination of coverage for transgender minors seeking gender-affirming care

  • Asset checks to block wealthy homeowners from receiving long-term Medicaid care

Democrat Response: Strong Opposition

Democrats strongly criticized the bill. Representative Frank Pallone warned it could lead to:

  • Millions losing coverage

  • Hospital closures

  • Increased premiums

  • Older and disabled patients struggling to afford care

What’s Next?

The House Energy and Commerce Committee is scheduled to review and amend the proposal. Even if passed by the House, the plan must survive scrutiny in the Senate, where some moderate Republicans may resist parts of the bill.

Conclusion

This Medicaid proposal is a political balancing act—trying to satisfy both fiscal conservatives and more moderate Republicans. But if passed, it could have significant and lasting effects on millions of Americans relying on Medicaid.

FAQ

The proposal includes work requirements for childless adults, increased paperwork and verification checks, higher co-payments for those above the poverty line, and stricter eligibility rules, with an estimated $880 billion in savings over ten years.

The proposal mandates that childless adults must work 80 hours per month to remain enrolled in Medicaid, a rule similar to one implemented in Arkansas in 2018 that led to thousands losing coverage.

States like California, New York, and Washington, where Medicaid covers undocumented immigrants, will face funding reductions due to the proposed changes in federal support for these programs.

The proposal could lead to millions losing Medicaid coverage, particularly vulnerable populations such as the elderly, disabled, and low-income adults. Increased costs and stricter eligibility rules may make healthcare less accessible for these groups.

Democrats argue that the proposal could result in millions losing coverage, hospital closures, and higher premiums, especially for older and disabled individuals who rely on Medicaid for care.

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