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3d ago

Medicare and Medicaid Mark 60th Anniversary as Major Funding Cuts Loom

The Office of Management and Budget is preparing to trigger up to 4% annual Medicare sequester cuts beginning in fiscal 2026.

FILE - President Lyndon B. Johnson uses the last of many pens to complete the signing of the Medicare Bill into law at the Truman Library in Independence, Missouri, July 30, 1965, with former President Harry S. Truman at his side. At rear are Lady Bird Johnson, Vice President Hubert Humphrey, and former first lady Bess Truman. (AP Photo, File)
WASHINGTON, DC - JUNE 23: Care workers with the Service Employees International Union (SEIU) participate in a living cemetery protest at the US Capitol June 23, 2025 in Washington, DC.
In this image taken from video, Amanda Hinton speaks about work requirements for Medicaid and the Supplemental Nutrition Assistance Program during an interview, Tuesday, July 1, 2025, at the Samaritan Center food pantry in Jefferson City, Mo. (AP Photo/David A. Lieb)
FILE - President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House, July 4, 2025, in Washington, surrounded by members of Congress. (AP Photo/Julia Demaree Nikhinson)

Overview

  • CMS has instructed states to begin enforcing Medicaid work requirements and stricter eligibility reviews ahead of next year’s funding reductions.
  • The One Big Beautiful Bill Act will slash $1 trillion from Medicaid over the next decade, the largest contraction in the program’s history.
  • Under PAYGO rules, projections show Medicare could face more than $45 billion in cuts in fiscal 2026, capped at 4% of its annual spending.
  • Analysts estimate the Medicaid reductions may strip coverage from nearly 12 million beneficiaries and lead to over 42,000 preventable deaths each year.
  • Growing bipartisan public support for both programs is driving lawmakers to explore PAYGO waivers and other relief measures in Congress.