House Republicans on Tuesday took the first step toward potentially cutting Medicaid, passing a budget blueprint that calls for $880 billion in spending cuts from the agency that oversees the safety-net insurance program.
Although the budget resolution does not mention Medicaid specifically, lawmakers would be hard pressed to find cuts sufficient enough to meet its targets without touching Medicare or Medicaid. If the Energy and Commerce Committee — the committee tasked with finding $880 billion in savings — cut everything that’s not healthcare-related, the committee would still be short $600 billion, according to the New York Times.
President Trump has said he wouldn’t cut Medicare, but he’s offered conflicting statements on Medicaid. On Tuesday, House Speaker Mike Johnson said Medicaid was “hugely problematic” due to alleged fraud, waste and abuse in the program.
Still, the budget resolution passed in razor-thin a 217-215 vote after some Republican lawmakers expressed concerns about potential cuts to Medicaid, which provides health coverage to almost 80 million low-income Americans.
Last week, a group of House Republicans in districts with large Hispanic populations sent a letter to Johnson lobbying him not to advance the E&C cuts.
“Slashing Medicaid would have serious consequences, particularly in rural and predominantly Hispanic communities where hospitals and nursing homes are already struggling to keep their doors open,” the letter read.
If the budget resolution is adopted by the Senate, Republicans will then be responsible for delineating the cuts in the reconciliation process, which allows Republicans to avoid Democratic filibusters.
There are multiple avenues to cutting Medicaid, including through instituting work requirements. The Congressional Budget Office estimated in 2023 that work requirements would reduce federal spending by $109 billion and lead to 1.5 million people on average losing federal funding for their Medicaid coverage.
E&C could also consider reducing the rate at which the federal government matches states’ Medicaid spending, or limiting supplemental payment programs in Medicaid.
Hospital and provider groups expressed concern about potential Medicaid cuts ahead of the budget resolution vote.
“On behalf of the hospitals, nurses, doctors and those who care for and serve the needs of the 72 million patients that rely on Medicaid, we urge you to consider the implications of hinging the budget reconciliation bill’s fate on removing health care access for millions of our nation’s patients,” said Rick Pollack, CEO of the American Hospital Association, on Tuesday.
The Association of American Medical Colleges said it was “extremely concerned” that the budget resolution would result in “unsustainable cuts to federal health programs, specifically Medicaid.”
