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Lawmakers and Providers Warn of Coverage Losses as One Big Beautiful Bill Act Takes Effect

State agencies have begun enforcing 80-hour work mandates with biannual Medicaid reviews, triggering warnings of tens of thousands of enrollees losing coverage.

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Overview

  • States are preparing to implement 80-hour monthly community engagement requirements, semiannual eligibility redeterminations and reduced FMAP payments under the new law
  • Health officials in Santa Cruz County estimate about 37,000 residents could lose Medicaid or ACA coverage, raising concerns over rural hospital closures
  • Critics say the law finances $4 trillion in tax breaks with $3.8 trillion in new debt and $3.4 trillion in deficits and reduces Medicaid services by more than $1 trillion
  • The Congressional Budget Office projects nearly 12 million additional uninsured by 2034, including 1.4 million non-citizens excluded under tighter eligibility rules
  • Democrats are holding town halls in North Carolina to spotlight a potential $26 billion to $32 billion state budget shortfall and mobilize opposition before the midterms