May 14th, 2025
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In Washington, Republicans in the House of Representatives have presented their main plan to save money. They want to cut about $880 billion, mostly from the Medicaid program, to help pay for $4.5 trillion in tax reductions.
The new rules, which are hundreds of pages long and were released late Sunday, are causing a big political fight about health care. This is the biggest fight since Republicans tried and failed to replace the Affordable Care Act, also known as Obamacare, in 2017.
Republicans say they want to stop "waste, fraud, and abuse" to save money with new rules for jobs and who can get help, but Democrats are afraid that millions of Americans will lose their health care. A first report from the non-political Congressional Budget Office suggested that these plans could mean 8.6 million fewer people have health care in the next ten years.
Rep. Brett Guthrie from Kentucky said that because they saved money, they can use it to continue the Trump tax cuts and keep their promise to working families.
But Democrats said the cuts are “terrible” and really seem like another try to get rid of Obamacare.
Representative Frank Pallone from New Jersey, a main Democrat, said clearly that millions of Americans will lose their health insurance. He also said that if this law passes, hospitals will close, older people will not be able to get the medical care they need, and insurance prices will go up for many people.
Republicans are trying to pass a large bill with tax cuts and spending cuts by Memorial Day, as Speaker Mike Johnson wants. This week, they will hold many public meetings all day and night to discuss different parts of the bill before combining them into one big plan.
The political situation in the future is unclear.
One Republican, Senator Josh Hawley from Missouri, said in an article on Monday that cutting healthcare to pay for tax cuts would be wrong and politically risky for his colleagues.
In total, 11 committees in the House have been writing their parts of the plan. Republicans want to save at least $1.5 trillion to help pay for keeping the tax cuts from 2017. These tax cuts were agreed on when Trump was president and will finish at the end of this year.
But the important Energy and Commerce Committee has been watched closely. This committee was told to find $880 billion in savings and they did, mostly by cutting health care costs. They also stopped green energy plans from the time when Biden was president. The first report from the CBO said the committee's plans would lower the deficit by $912 billion over ten years. At least $715 billion of this would come from changes to health care.
The main way they save money is by changing Medicaid, which helps over 70 million Americans get low-cost or free healthcare, and the Affordable Care Act, which has helped millions more people get covered in the last 15 years.
To get Medicaid, healthy adults without children would need to work, study, or volunteer for at least 80 hours each month. They would also have to show they qualify for the program two times a year instead of one. The law also makes it harder for people to prove how much money they earn when they sign up for health insurance through the Affordable Care Act.
This could make more people leave the program and make it hard for them to keep their coverage, especially if they have to travel far to an office to show proof of their income in person. But Republicans say it will make sure the program is given to the people who should get it.
Also, some people on Medicaid who make more than the federal poverty level (about $32,000 a year for a family of four) might need to pay for some services. But these payments would not be for emergency room visits, care during pregnancy, doctor visits for children, or regular check-ups. The payments would also be limited to $35 for each visit.
Also, applicants cannot get Medicaid if they own a house worth over $1 million.
The suggested law also affects immigrants living in the country without legal permission or documents. It cuts the amount of money the national government gives to states, like New York or California, that let these immigrants join Medicaid. To get the ACA health coverage, people would need to show they are in the country legally.
Other changes would make all states pay more.
Many states have added more people to their Medicaid programs because the government offered help, but the new law would stop a 5% increase that started during the COVID-19 pandemic.
There would be a stop to a tax that some states use to help pay for their healthcare programs for people who are poor. Some people say this tax is a way for states to get more money from the government unfairly.
The energy parts of the law are shorter, but they undo some of the climate plans that President Joe Biden made law with the Inflation Reduction Act.
It suggests stopping money for several energy loan and investment plans, while allowing quicker permission for natural gas projects and oil pipelines.
May 14th, 2025
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