May 9th, 2025
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It seems that Republicans in the House of Representatives might make smaller cuts to the Medicaid healthcare program than they first planned, as part of their tax bill. They are facing opposition from some Republican lawmakers who do not want to stop providing cheap healthcare for the people they represent.
A new report says that millions of Americans might lose their health insurance from Medicaid. This is because Republicans want to cut government spending on health and food programs to save money, while also reducing taxes a lot.
According to the CBO report, if any of these options were chosen, fewer people would be in Medicaid and more people would not have health insurance.
The results made people wonder again if House Speaker Mike Johnson can get the bill passed that President Donald Trump calls his “big, beautiful bill.” He had set a deadline for himself, which is Memorial Day.
Politicians are getting more concerned, especially because people are worried about the economy due to Trump's policies. For example, the trade war might cause prices to go up, stores to have fewer goods, and people to lose their jobs across the country. A main part of the plan is the Republican idea to keep the tax cuts from 2017 that will finish soon. But they want to reduce spending on other programs to help pay for this and stop the country's debt from getting bigger.
This week, Johnson has been meeting privately with Republican groups in the speaker's office at the Capitol. He has met especially with moderate Republicans who represent areas with close elections. These Republicans are warning against big spending cuts that could seriously hurt their local areas.
Democrats, who asked for the CBO report, quickly used what they found.
A report from the Congressional Budget Office, which is not linked to any political party, supports our view: Republican plans for Medicaid will mean millions of people lose their health care, said Rep. Frank Pallone.
After a meeting on Tuesday evening, Republican politicians in the House of Representatives said that Johnson and other Republican leaders would not make some of the most discussed changes to how states get money for Medicaid.
Representative Jeff Van Drew from New Jersey said the changes to healthcare for people with low incomes will not happen.
Republican Representative Nick LaLota from New York pointed out that Trump had said he was against cutting Medicaid. He also said that many Republicans now agree they should focus on changing other parts of the Medicaid program instead.
LaLota suggested other ideas, like making people who get Medicaid have to work. They would also have to show they are allowed to get it twice a year, not just once. Also, immigrants who are in the U.S. without legal papers would not get help.
But some Republicans, like those in the House Freedom Caucus, want to cut government spending more to stop the national debt from growing fast because of the tax cuts.
Medicaid is a program for adults that the states and the government manage together. It provides healthcare for 71 million people.
Republicans are considering different ways to cut how much the government spends on the program. One idea is to pay less for people's healthcare, which the government sometimes pays up to 90% of.
They are also thinking about putting a limit on how much the government spends on each person in Medicaid, but that plan seems to be less popular with politicians now.
The CBO said that these changes could save a lot of money, but around 10 million people might lose their Medicaid health coverage.
It appears those options are no longer viable.
However, Republicans are still thinking about other changes to Medicaid. One idea is to put new limits on how much states can tax healthcare providers. Currently, this tax helps states get more money from the federal government. While this change could save a lot of money, a report says it might also mean around 8 million people lose their health insurance.
May 9th, 2025
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