Proposed Medicaid Cuts & Federal Budgeting
The U.S. House of Representatives recently passed budget resolution included roughly $880 billion in cuts between 2025 and 2034 to the House Energy and Commerce Committee, which oversees Medicaid. The resolution passed, 217-215.
Prior to the vote in late February, the American Hospital Association released a statement urging legislator to protect Medicaid from “harmful cuts.”
“On behalf of the hospitals, nurses, doctors and those who care for and serve the needs of the 72 million patients that rely on Medicaid, we urge you to consider the implications of hinging the budget reconciliation bill’s fate on removing health care access for millions of our nation’s patients,” AHA President and CEO Rick Pollack said in the statement. “These are hardworking families, children, seniors, veterans, and disabled individuals who rely on essential health care services.”
More than 72 million people in the country rely on Medicaid, according to the most recent data from the Centers for Medicare and Medicaid Services.
In a KFF analysis, Elizabeth Williams, Alice Burns, and Robin Rudowitz wrote that “detailed proposals” aren’t yet being considered in Congress. Still, reductions at the federal level would require states to make “tough choices about how to offset reductions through tax increases or cuts to other programs, like education.”
If they’re unable to trim enough from other areas, the KFF authors said Medicaid programs would have to be reduced.
While the budget legislation didn’t specifically mention Medicaid cuts, a Congressional Budget Office analysis found that it would be required, noting that “Medicaid outlays account for $8.2 trillion, or 93 percent, of that amount.”
