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2w ago

House Republicans Propose Medicaid Cuts with Work Requirements in Budget Compromise

The new plan removes per-capita caps and FMAP reductions but introduces stricter eligibility checks, sparking concerns over coverage losses.

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A US flag flies near the dome of the US Capitol in Washington, DC, on February 25, 2025.
Speaker of the House Mike Johnson, R-La., speaks during a news conference at the Capitol, Tuesday, May 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)
Alexandria Ocasio-Cortez speaks during a stop on the ‘Fighting Oligarchy’ tour with U.S. Senator Bernie Sanders at Grand Park on April 12, 2025 in Los Angeles, California.

Overview

  • House Republicans have unveiled a Medicaid proposal that includes work requirements for able-bodied adults and biannual eligibility checks, aiming to cut $880 billion over the next decade.
  • The plan, introduced by the House Energy and Commerce Committee, avoids controversial per-capita caps and FMAP reductions, reflecting a compromise between GOP moderates and hardliners.
  • Democrats, including Rep. Alexandria Ocasio-Cortez and Gov. Michelle Lujan Grisham, warn that the cuts could lead to millions losing coverage and destabilize rural hospitals reliant on Medicaid funding.
  • The Congressional Budget Office previously estimated that some proposed Medicaid caps could leave 1.5 million people uninsured by 2034, though the latest compromise excludes such measures.
  • The Energy and Commerce Committee is set to mark up the bill this week, advancing the GOP's effort to extend Trump’s 2017 tax cuts through significant spending reductions.