Debate Intensifies Over Potential Health Insurance Losses Under New Budget Bill
The recent budget bill passed by House Republicans has sparked a debate over the potential impact on millions of Americans’ health insurance coverage. The bill, approved on Thursday morning, has led to differing opinions on the extent of its effects.
Democratic lawmakers warn that as many as 13.7 million individuals might lose their health coverage, a significant portion of whom are Medicaid beneficiaries. This claim, however, is contested by House Republicans.
Rep. Ken Calvert (R-CA) addressed these concerns in a statement, saying, “The Budget Resolution passed today does not specify any cuts to federal programs. I want to make it clear that I do not support cuts to Social Security, Medicare and the safety net programs our vulnerable Americans rely on.”
Despite these assurances, the nonpartisan Congressional Budget Office (CBO) presents a different perspective. According to their analysis, the bill introduces more stringent work requirements for Medicaid, mandating recipients to either work or attend school for at least 80 hours in the month before enrollment. States would also have the option to extend this requirement to a full year prior to enrollment.
Additionally, the bill proposes significant reductions in discretionary spending for both the Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS), the agencies responsible for administering these programs.
The CBO estimates that these measures could result in at least 7.6 million individuals being removed from Medicaid.
When considering changes to the Affordable Care Act (ACA), also managed by HHS and CMS, the number of uninsured people could increase further.
The 2022 Inflation Reduction Act, signed by President Joe Biden, introduced tax credits to help low- and middle-income Americans afford ACA plans. These credits are due to expire at the year’s end, and the current Republican bill does not include a renewal for them.
The CBO anticipates that many ACA enrollees who currently benefit from these credits will forgo health insurance rather than absorb the additional costs, contributing to the projection that 13.7 million people could lose their health insurance.
Rep. Alexandria Ocasio-Cortez (D-NY) commented on the situation, stating, “Thirteen point seven million Americans are the number of people in this country whose health care are going to be stripped in this bill. Now, Republicans are going to try to tell you every distraction in the book from that essential number.” said Rep. Alexandria Ocasio-Cortez (D-NY).
These changes to Medicaid and the ACA might also impact healthcare access for those who remain insured.
Over 30% of rural hospitals in the United States face potential closure due to financial struggles, with many relying on Medicaid payments for providing care.
Rep. Mariannette Miller-Meeks (R-IA), a supporter of the legislation, could witness the closure of four hospitals within her district.
According to the Kaiser Family Foundation, which monitors public health polling, 76% of Americans are against major cuts to Medicaid, and 65% oppose reductions to ACA tax credits.
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