May 9th, 2025
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It seems that Republicans in the House of Representatives are reducing some, but not all, of the large cuts to the Medicaid program in their tax plan. They are facing opposition from more moderate Republican politicians who do not want to stop giving almost free healthcare to the people they represent.
A new report says that millions of Americans might lose their health insurance, called Medicaid, if Republicans reduce government spending as they plan.
The CBO report said that with each of these choices, fewer people would be in Medicaid and more people would not have health insurance.
The results made people wonder again if the leader of the House of Representatives, Mike Johnson, could get the bill passed that President Donald Trump calls his "big, beautiful bill" by the Memorial Day date he set.
Politicians are becoming more concerned, especially because people are worried about the economy due to Trump's policies. For example, the trade conflict could cause prices to go up, stores to have fewer goods, and people to lose their jobs all over the country. A main part of the plan is the Republican goal to continue tax cuts from 2017 that will finish soon. However, they want to reduce spending in other areas to help pay for these cuts and prevent the country's debt from increasing.
This week, Johnson has been meeting privately in his office at the Capitol with groups of Republicans. These include moderate lawmakers from competitive areas who are advising against large budget cuts that would negatively affect their districts.
Democrats, who had asked for the CBO report, quickly used the information.
A neutral government report confirms that the Republican healthcare plans will cause millions of people to lose their health insurance, said Representative Frank Pallone.
After a meeting on Tuesday night, Republican politicians in the House suggested that Johnson and the Republican leaders were deciding not to make some changes to how the government gives money to states for healthcare for poor people (Medicaid).
Representative Jeff Van Drew from New Jersey said the changes to Medicaid will not happen.
Republican Representative Nick LaLota from New York mentioned that Trump said he would not support cutting Medicaid. He also said that many Republicans now agree to cut other parts of Medicaid instead.
LaLota had other ideas too. He suggested that people who get Medicaid should have to work. He also said they should prove they still qualify twice a year instead of once. And he wants to make sure immigrants who are in the U.S. illegally do not receive help.
However, some conservative Republicans, especially those in the House Freedom Caucus, want bigger cuts because they are trying to stop large deficits caused by tax cuts.
Medicaid is a program for healthcare that is managed by both the states and the national government, and it helps 71 million adults.
Republicans are looking at different ways to spend less government money on the program. One idea is to pay a smaller part of people's health costs. The government sometimes pays as much as 90% of these costs.
They are also thinking about limiting how much the government spends on each person in Medicaid, but that idea seems to be losing support among politicians.
The CBO said these changes would save billions of dollars, but about 10 million people would lose their Medicaid health insurance.
It seems they are no longer being considered.
However, Republicans are still thinking about other suggested changes to Medicaid. One change is to put new limits on how much states can tax healthcare providers. This tax helps states get more money from the federal government.
This change could save a lot of money, but a report says it might also mean about 8 million people would lose their health insurance.
May 9th, 2025
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