Summary
A new bill passed by the Senate, backed by President Donald Trump, plans to cut federal spending on Medicaid and the Affordable Care Act by about $1 trillion over 10 years. This reduction could result in roughly 12 million more people losing health insurance by 2034, potentially affecting hospitals and health centers financially and operationally. The bill also proposes a work requirement for Medicaid recipients in many states to maintain their benefits.
Key Facts
- The Senate passed a bill endorsed by President Trump that cuts spending on Medicaid and the Affordable Care Act by $1 trillion over the next decade.
- Nearly 12 million more people could be without health insurance by 2034 due to these cuts, according to estimates.
- The bill requires many Medicaid enrollees to work or meet other standards, with this affecting enrollees in 40 states and Washington, D.C.
- The work requirement would not apply in 10 states that have not expanded Medicaid under previous health reforms.
- The legislation may lead to financial strain on hospitals, nursing homes, and community health centers, possibly forcing them to cut services or close facilities.
- The House of Representatives is set to consider the Senate's version of the bill.
- Work requirements for Medicaid have been costly and administratively challenging in states like Georgia, which has spent millions on the program with limited returns on health benefits.
