The U.S. House and U.S. Senate last week took initial steps to achieving budget reconciliation that are expected to rely heaving on large spending cuts to health care programs, including Medicaid, to advance President Trump’s legislative agenda to fund tax cuts and increase defense spending and fund border security.
The U.S. House Budget Committee considered a plan that would direct the Energy and Commerce Committee to reduce spending by at least $880 billion over the next ten years. The Energy and Commerce Committee has jurisdiction over the Medicaid program. While the U.S. House Committee bill does not specifically identify changes, earlier this year, the U.S. House Budget Committee previously released an options document that includes seven Medicaid proposals that cumulatively would cut federal spending by $2.3 trillion over ten years. The document identifies the seven Medicaid proposals listed would together cut federal spending by $2.3 trillion over ten years, including capping Medicaid funding on a per capital basis, reducing the federal matching rate which provides revenue to states, and restricting state use of provider taxes to finance state Medicaid costs.
Separately, last week the U.S. Senate Budget Committee advanced a fiscal year 2025 budget resolution by a vote of 11-10 that includes $342 billion package in new spending primarily for the military, energy independence and for border security. It does not fully pay for the increases but it directs the U.S. Senate Finance Committee, which has jurisdiction over Medicaid, to cut no less than $1 billion.