Partisan votes were the first step to bringing the budget settlement bill into full home.
The House Energy and Commerce Committee has approved a Medicaid change that cuts federal spending by $712 billion over a decade.
The approval took place on Party Lines 30-24 on May 14, after a marathon session that lasted more than 26 hours, marking the first step towards passing a larger bill aimed at funding President Donald Trump’s agenda.
During the debate, Republicans and Democrats drew very different photographs of the proposed changes to Medicaid and how they would affect beneficiaries.
Republicans have presented reforms as a set of common sense measures that expand the viability of the $914 billion program, primarily by ensuring that only those entitled to Medicaid benefits are enrolled in the program.
Democrats said changes will be calculated to provide tax cuts to billionaires by creating barriers to registration and treatment for low-income, disabled and seniors, and that millions of low-income Americans will take away health insurance.
Committee chair Brett Guthrie (R-KY.) summarizing the bill’s provisions, saying, “This is all part of an effort to strengthen Medicaid for those who need it the most.”
Ranking member Frank Paron (DN.J.) said, “This is not a medium bill and it doesn’t focus on reducing ‘waste, fraud, abuse’. Instead, Republicans are deliberately depriving millions of Americans of health care, so they can give huge tax credits to the super-rich people who don’t need them. ”
change
Under the bill, healthy adults without dependents must complete the “Community Engagement Requirements” to maintain their Medicaid qualification. This means spending work on work, education, volunteer services, or an average of 20 hours a week.
Registrants should also ensure they are eligible for the low-income program twice a year rather than annually.
Medicaid registrations grew to an all-time high of 94 million people in March 2023. This is just before the annual verification requirements were revived after the Community Era freeze.
The bill also adds requirements to some Medicaid recipients to create more than 100% of federal poverty levels and pay certain out-of-pocket costs. These out-of-payments are determined by the state and are limited to $35 and do not apply to emergency, prenatal, pediatric care, or primary care testing.
People who own homes worth more than $1 million are not eligible for low-income programs.
Also, federal rebates for Medicaid enrollees who participate in the Affordable Care Act, which is about 25% of all enrollees, will be reduced from 90% to 80% in states that allow illegally residents in the country to register with Medicaid.
Approximately 1.4 million people who lack legal status are currently registered with Medicaid, according to the Congressional Budget Office.
Currently, around 12 states offer Medicaid to some people who do not have legal status.
The bill also removes the 5% pandemic incentive payments offered to the state to increase registrations.
The bill proposes a new state tax freeze on Medicaid providers. Currently, 49 states collect a variety of taxes from healthcare providers and return most of their money to providers in the form of increased payments, thereby increasing the number of Medicaid refunds they receive from the federal government.
Pushback
The Democrats pushed two points in the debate. The first was that the bill’s provisions would remain in millions without health care. Second, the true purpose of the bill was to benefit the wealthy people, a reference to the GOP plan that extends the 2017 Tax Cuts and Employment Act (TCJA).
“This agenda will drive at least 13.7 million people out of healthcare coverage,” said Rep. Diana Degette (D-Colo.). “And you’ll do that and cut taxes on rich people who just want to be rich.”
Republicans said the statement on the loss of healthcare for vulnerable low-income people is highly exaggerated and that they risk all support without intervention and that all support cannot survive without intervention.
“This budget does not cut down on Medicaid, Medicare or Social Security benefits for Americans who are truly needed,” said Rep. Erin Fusin (R-ind.), challenging the claim that 13.7 million people will lose their health insurance.
“Pregnant women, children, individuals with disabilities, low-income elderly people, vulnerable families. These Americans will continue to have access to the care they need.”
Rep. Julie Fedorchak (RN.D.) said, “The dollars that are valuable to Medicaid are spent on people who do not meet the eligibility requirements established by Democrats in this room.”
Outlook
The proposed changes would achieve spending cuts for Republicans and increase the number of uninsured Americans, according to the Congressional Budget Office.
Includes other items within the scope of the committee–Energy, environment, communication– Commission actions will accumulate a $912 spending cut by 2034.
The Congressional Budget Office also predicts that proposed changes to the Medicaid program will increase the number of uninsured people in the United States by 2034 at least 7.7 million.
Speaker Mike Johnson (R-La.) said he hopes to pass the full budget settlement bill to the House of Representatives for consideration by May 26th and forward it to the Senate.
