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Proposed Medicaid Cuts and Work Requirements Spark National Debate

Republican budget proposals could reduce Medicaid coverage for millions while introducing work requirements for some recipients.

Speaker of the House Mike Johnson, R-La., speaks at the Conservative Political Action Conference, CPAC, at the Gaylord National Resort & Convention Center, Thursday, Feb. 20, 2025, in Oxon Hill, Md. (AP Photo/Jose Luis Magana)
Speaker of the House Mike Johnson during a news conference at the U.S. Capitol on Feb. 25, 2025.
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Overview

  • The U.S. House recently passed a budget resolution aiming to cut $880 billion in programs under the Energy and Commerce Committee, with Medicaid being a primary target.
  • Proposed Medicaid work requirements would apply only to able-bodied adults without dependents, a small subset of Medicaid recipients, many of whom are already employed.
  • Critics argue that the cuts and work requirements could lead to millions losing health coverage, including 770,000 Illinois residents, according to Governor JB Pritzker.
  • Supporters of work requirements claim they could reduce program costs and incentivize employment, though past experiments, like in Arkansas, resulted in disenrollment due to bureaucratic obstacles rather than increased employment.
  • Medicaid remains broadly popular, with nearly 70% of Americans reporting favorable views of the program and many expressing concerns about the potential impact of reduced access.