May 14th, 2025
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WASHINGTON (AP) — House Republicans have shown their main idea for saving money in President Donald Trump's healthcare plan. They plan to cut about $880 billion from programs like Medicaid. This money will help pay for $4.5 trillion in tax cuts.
The bill, which is hundreds of pages long and was shown late on Sunday, is causing the biggest political argument about health care since Republicans tried and failed to get rid of and change the Affordable Care Act, also known as Obamacare, in 2017 during Trump's first term.
Republicans say they want to stop waste and fraud to save money with new rules about working and who can get help, but Democrats worry that millions of Americans will lose their health insurance.
These savings mean we can use this money to continue the Trump tax cuts and keep the Republican promise to ordinary families, said Rep. Brett Guthrie of Kentucky, the Republican leader of the committee that deals with health care costs.
But Democrats said the cuts were "bad" and were really just another attempt to get rid of Obamacare.
Millions of Americans will definitely lose their health care, said Rep. Frank Pallone of New Jersey, a main Democrat on the committee. He also said that hospitals will close, older people won't be able to get the care they need, and prices will increase for millions of people if this law passes.
Republicans are trying to pass a big bill from Trump that includes tax cuts and spending cuts. House Speaker Mike Johnson wants it passed by the end of May. This week, Republicans will have many public meetings, day and night, to discuss different parts of the bill before they put it all together into one large package.
The future of politics is unclear.
A Republican senator, Josh Hawley from Missouri, wrote in an article on Monday that reducing healthcare to pay for tax cuts would be "morally wrong and very bad for politics."
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 continuing the 2017 tax cuts. These cuts were agreed during Trump's first time in office and will end at the end of the year.
The important Energy and Commerce Committee had to find $880 billion in savings and succeeded. They did this mainly by cutting healthcare costs and stopping some green energy plans from the time Biden was president. The first analysis said their ideas would reduce the government's debt by $912 billion over ten years, with most of that money coming from the healthcare changes.
The plan saves money mainly by changing Medicaid, which helps over 70 million Americans get healthcare at a low cost, and the Affordable Care Act, which has helped millions more get healthcare in the last 15 years.
To get Medicaid, healthy adults without children would need to work, study, or volunteer for at least 80 hours a month. They would also have to show they qualify for the program twice a year, instead of just once. The new rules would also check people's income more carefully when they sign up for health insurance through the Affordable Care Act.
This might make people leave the program more often and make it hard for them to keep their benefits, especially if they have to drive far to an office to show proof of their income. But Republicans say it will make sure the program only helps people who should get it.
Also, some people on Medicaid who earn a little more than the poverty line, about $32,000 a year for a family of four, might have to pay for some services themselves. These costs, except for emergency care, pregnancy care, children's visits, and regular doctor visits, would be limited to $35 for each visit.
Also, people could not get Medicaid if their house is worth over $1 million.
The new law also affects immigrants who do not have legal permission to live in the country. It reduces the money the government gives to states like New York or California that allow these immigrants to get health care.
Other changes would make all states pay more.
Many states have added more people to their Medicaid lists because the government offered financial help, but the new law would stop a 5% increase in funding that started during the COVID-19 pandemic.
States would stop a special tax called the 'provider tax'. This tax helps states pay for parts of their healthcare programs for people with low incomes, called Medicaid. Because of this tax, states often get more money from the national government. Some people say this is a way for states to unfairly get more money.
The energy parts of the law are much shorter, but they remove some plans to fight climate change that President Joe Biden approved in another law.
It suggests stopping money for several energy loans and investment plans, while making it faster to get permission for natural gas projects and oil pipelines.
May 14th, 2025
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