May 14th, 2025
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In Washington, House Republicans have shown their main plan to save money for President Donald Trump's healthcare bill. They want to cut at least $880 billion, mostly from Medicaid, to help pay for $4.5 trillion in tax cuts.
The new law, which is very long and was announced on Sunday, is causing the biggest political argument about healthcare since Republicans tried and failed to replace Obamacare in 2017, when Trump was president.
Republicans say they want to stop waste, fraud, and misuse of money to save money by adding new rules for work and who can get benefits, but Democrats are worried that millions of Americans will lose their healthcare. A first study by a neutral government office said these plans could mean 8.6 million fewer people have health insurance in the next ten years.
Brett Guthrie, a Republican representative from Kentucky, said that saving money like this lets them use it to continue the tax cuts Trump made and keep their promise to working families. He is in charge of the committee that deals with health care costs.
But Democrats said the cuts are "wrong" and are really just another try to get rid of Obamacare.
Millions of Americans will lose their health care, said Representative Frank Pallone of New Jersey, the main Democrat on the committee. He also said that if this law passes, hospitals will close, older people will not be able to get the care they need, and costs will go up for millions.
Republicans are trying to pass a large bill with tax cuts and spending cuts by a deadline set by House Speaker Mike Johnson. This week, they will hold many public meetings, day and night, to talk about different parts of the bill before combining them into one big plan.
The political future is unclear.
One Republican senator, Josh Hawley from Missouri, wrote in a newspaper article on Monday that cutting healthcare to pay for tax cuts would be wrong and dangerous.
Overall, 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 first president and will finish at the end of the year.
The important Energy and Commerce Committee has been watched closely. They were told to find $880 billion in savings and they did. They saved money mainly by cutting healthcare costs, but also by ending some green energy programs from when Biden was president. The first report from the CBO said the committee's ideas would lower the deficit by $912 billion over ten years, with at least $715 billion coming from changes to health services.
The plan saves money mainly by changing Medicaid, which gives low-cost healthcare to over 70 million Americans, and the Affordable Care Act, which has helped millions more people get healthcare in the last 15 years.
To receive Medicaid, healthy adults without children would need to work, study, or volunteer for at least 80 hours each month. People would also need to prove they still qualify for the program two times a year instead of one. The plan also makes it harder to hide how much money you earn if you want health insurance through the Affordable Care Act.
This will probably make people leave the program more often and make it hard for them to keep their benefits, especially if they have to travel a long way to a local office to show their income in person. But Republicans think it will make sure the program is given to those who truly need it.
Some people on Medicaid who earn 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 costs would not apply to emergency room visits, care for pregnant women, children's visits, or regular check-ups. The most they would pay is $35 per visit.
And people cannot receive Medicaid if their house is worth over $1 million.
The suggested law also affects immigrants living in the country without legal papers.
Other actions would make all states share the costs.
Many states have added more people to their healthcare programs because the government offered money, but the new law would stop a 5% increase that was added during the COVID-19 pandemic.
There would be a stop to a special tax that some states use to help pay for their healthcare programs for poor people. This tax often helps states get more money from the national government. Some people say this is a way states can unfairly increase their money.
The parts of the law about energy are much shorter, but they cancel some of the climate change plans that President Joe Biden made law in the Inflation Reduction Act.
It suggests stopping money for different energy programs and making it faster to get permission for natural gas and oil pipelines.
May 14th, 2025
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