Republicans in Congress are reconsidering their proposal to cut federal Medicaid spending but are still weighing options that could reduce services for children and vulnerable groups.
U.S. House Speaker Mike Johnson confirmed last week that the GOP won’t reduce the 90% federal funding match for working-age adults under Medicaid. However, they are considering a cap on federal spending for Medicaid, which could change the program significantly. Another proposal would limit states’ ability to use tax revenue from healthcare providers to increase Medicaid payments, which helps many hospitals.
The Congressional Budget Office has warned that any cuts could strain state budgets, leading to fewer healthcare services, reduced benefits, or cuts to enrollment. Child health advocates are concerned these changes could impact routine care for millions of children covered by Medicaid and the Children’s Health Insurance Program (CHIP).
Medicaid also supports school-based health services, which help children with preventive care, mental health services, and physical therapies. Cuts could lead to higher emergency room visits and lost educational opportunities, especially in underserved communities, according to experts.
Despite concerns, some Republicans argue that Medicaid cuts should focus more on vulnerable populations, including children. However, experts like Chris Pope from the Manhattan Institute believe Republicans will struggle to make major changes to Medicaid due to a lack of votes.
Republicans are seeking $2 trillion in savings to offset the cost of extending tax cuts from the Trump administration, with $880 billion expected to come from Medicaid cuts. Some fiscal conservatives still support reducing Medicaid funding for working-age adults to achieve larger savings.
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