Reports from the Congressional Budget Office (CBO) or independent health policy think tanks

House Republicans Propose $2.3 Trillion Medicaid Cuts Impacting 80 Million to Fund Billionaire Tax Breaks

Jan 14, 2025, 06:16 PM

House Republicans are reportedly planning significant cuts to Medicaid, aiming to reduce federal spending by $2.3 trillion over the next decade as part of a broader strategy to finance tax cuts for billionaires and large corporations. The proposed cuts include converting Medicaid's funding structure to a per-capita cap, which would limit federal funding to a fixed amount per beneficiary, potentially leading to reduced coverage and services. Other measures under consideration involve lowering the federal matching rate for Medicaid, including the Affordable Care Act (ACA) expansion match rate, and imposing work requirements. These changes could force states to either raise new revenues or cut Medicaid spending, affecting the 80 million Americans who rely on the program for health care. Additionally, the plan includes limiting the use of provider taxes, contributing to the overall $5.5 trillion in deficit reductions.