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House GOP Introduces $880 Billion Medicaid Savings Bill

The proposal focuses on work requirements and tighter eligibility checks while avoiding deeper cuts, but the CBO warns millions could lose coverage.

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A US flag flies near the dome of the US Capitol in Washington, DC, on February 25, 2025.
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)
Alexandria Ocasio-Cortez speaks during a stop on the ‘Fighting Oligarchy’ tour with U.S. Senator Bernie Sanders at Grand Park on April 12, 2025 in Los Angeles, California.

Overview

  • House Republicans unveiled a reconciliation bill aiming to save $880 billion over a decade, largely through Medicaid reforms like work requirements and biannual eligibility verifications.
  • The bill avoids more drastic measures such as per-beneficiary spending caps and reductions in federal Medicaid match rates, reflecting a compromise between moderates and hardliners.
  • The Congressional Budget Office estimates the proposed changes would result in 8.6 million fewer Americans having health insurance over the next decade.
  • Democrats, governors, and advocacy groups warn the cuts could destabilize health care systems, with New Mexico Governor Michelle Lujan Grisham cautioning that lives could be lost.
  • The Energy and Commerce Committee is set to mark up the legislation this week, with Republicans racing to pass it before Memorial Day to fund Trump's tax-cut agenda.