May 14th, 2025
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Republicans in the House of Representatives have presented their main plan to save money in President Donald Trump's important bill. This plan involves cutting at least $880 billion, mostly from Medicaid. This is to help pay for $4.5 trillion in tax cuts.
The new law, which is very long and was shown late on Sunday, is causing a big political fight about health care. This is the biggest fight since Republicans tried but failed to remove and replace Obamacare in 2017, during Trump's first time as president.
Republicans say they want to stop wasting money and cheating to save money with new rules for jobs and who can get help, but Democrats are afraid that many Americans will lose their health insurance. An early report from a group that is not connected to either party estimated that these plans would mean 8.6 million fewer people would have health care in ten years.
Saving this money means we can use this plan to continue the Trump tax cuts and keep the Republican promise to working middle-class families, said Rep. Brett Guthrie from Kentucky, the main Republican on the Energy and Commerce Committee, which deals with health care money.
However, Democrats said the cuts were "terrible" and claimed they were another attempt to remove Obamacare.
Congressman Frank Pallone said that millions of Americans will lose their health care if the bill passes. He also said that if this happens, hospitals will close, older people won't be able to get the care they need, and health insurance prices will increase for many people.
Republicans are trying to pass a big bill with tax cuts and spending cuts by Memorial Day, a deadline set by House Speaker Mike Johnson. This week, they will have many public meetings, day and night, to discuss different parts of the bill before putting them all together into one large plan.
The future of politics looks unclear.
One Republican Senator, Josh Hawley from Missouri, said on Monday that reducing healthcare to pay for tax cuts would be very wrong and politically risky.
In total, 11 committees in the House have been working on their parts of the plan. Republicans want to save at least $1.5 trillion to help pay for keeping the 2017 tax cuts. These tax cuts were approved when Trump was president and will finish at the end of the year.
However, the important Energy and Commerce Committee was watched closely. It was asked to find $880 billion in savings and did this mainly by cutting healthcare costs, but also by stopping green energy plans from the Biden period. An early report said the committee's ideas would lower the national debt by $912 billion over ten years, with at least $715 billion saved from changes to healthcare.
A lot of the money saved comes from changes to Medicaid, which gives low-cost health care to over 70 million Americans. It also comes from the Affordable Care Act, which has helped millions more get health insurance in the last 15 years.
To get Medicaid, adults who are able to work and don't have children would need to work, study, or volunteer for at least 80 hours each month. Also, people would need to show they still qualify for the program twice a year instead of once. The new law would also make 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 mean more people leave the program and find it hard to keep their benefits, especially if they have to travel far to an office to show proof of their income in person. But Republicans think this will help make sure the program is only for people who should get it.
Some people on Medicaid who make more than the federal poverty level, about $32,000 a year for a family of four, might have to pay for some medical services. These payments, which would not include emergency room visits, care for pregnant women, children's doctor visits, or regular check-ups, would be limited to $35 per visit.
Also, people could not get Medicaid if their home is worth more than $1 million.
The new law also affects immigrants who are in the country without legal papers. It reduces the money the government gives to states like New York or California by 10% if they let these immigrants get health insurance like Medicaid. To get health insurance through the ACA, people would need to show they are legally in the country.
Other actions would make all states pay more.
Many states have added more people to their Medicaid programs because the government gave them money. But, the new law would stop a 5% increase that started during the COVID-19 pandemic.
They would stop increasing a tax on healthcare providers that some states use to help pay for their Medicaid programs. Critics say this tax is a way for states to get more money from the federal government and increase their budgets.
The parts of the law about energy are much shorter, but they cancel some of the climate change plans President Joe Biden included in the Inflation Reduction Act.
It suggests stopping money for several energy loans and investment plans, and also allowing quicker permission for developing natural gas and building oil pipelines.
May 14th, 2025
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