New Legislation Threatens Medicaid Coverage
Late Sunday, House Republicans introduced a bill that, according to experts, would drastically reduce Medicaid access for numerous low-income Americans, including children and individuals with disabilities. This move appears to support tax reductions primarily benefiting the affluent.
Released by the House Energy and Commerce Committee, this new bill forms part of a broader budget reconciliation plan that Republican leaders aim to finalize by Memorial Day.
The proposed changes to Medicaid are significant; they would remove millions from the program by imposing work requirements for some participants and demanding payments from adults earning above 100% of the federal poverty line, which equates to $15,650 a year for a single person by 2025.
The Congressional Budget Office, in a quick review, projected that the healthcare components of the Republican proposal would reduce expenditures by at least $715 billion over ten years and result in at least 8.6 million more uninsured Americans.
Larry Levitt, KFF’s executive vice president for health policy, commented, “The technical and complex nature of the Medicaid changes proposed by House Republicans might be hard for the public to understand. However, what is clear is the CBO’s finding that these alterations will significantly increase the uninsured population.”
“It is disgraceful to strip healthcare from children, mothers, the elderly in nursing homes, and disabled people only to offer tax cuts to those who don’t need them.”
Claiming to target fraud, the GOP’s legislation would introduce numerous new checks and requirements for verifying the eligibility of Medicaid recipients, a move experts argue would lead to significant coverage losses due to bureaucratic hurdles.
The bill also introduces a mandate that requires Medicaid recipients to engage in at least 80 hours per month of work, community service, or similar activities. Many who receive Medicaid already meet this criterion, and prior implementations of such work requirements have proven problematic at the state level.
Additionally, the legislation would modify “cost-sharing requirements for certain expansion individuals under the Medicaid program,” essentially requiring some recipients to pay higher amounts for their coverage, either through increased premiums or additional fees.
Describing the financial impact on low-income individuals, Bobby Kogan of the Center for American Progress noted, “Imagine being required to pay $1,000 in Medicaid fees on a $20,000 income. That’s just cruel.”
Kogan further expressed sympathy for those adversely affected by the bill, stating, “My heart goes out to those who will suffer if this is enacted. It’s our duty to prevent this.”
Rep. Frank Pallone Jr. (D-N.J.), top Democrat on the House Energy and Commerce Committee, criticized the bill and its covert release, stating, “This bill confirms our long-standing assertion that Trump and the Republicans have been dishonest about their intentions to cut Medicaid and remove healthcare.”
Pallone also warned about the dire consequences of this bill, “The release of this bill in the dead of night is because its true aims—stripping millions of their healthcare, shuttering hospitals, denying seniors necessary care, and raising premiums for millions—must be concealed.”
He concluded with a call to action, “Stripping healthcare from vulnerable groups to fund tax breaks for the wealthy is reprehensible. We have thwarted such Republican attempts before, and we must do so again.”
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An economic reporter, Dax Everly breaks down financial trends and their impact on Americans’ daily lives.