House panel advances Medicaid cuts; hospitals urge lawmakers to ‘alter course before it’s too late’

Advertisement

The House Energy and Commerce Committee on May 14 advanced legislation containing sweeping Medicaid cuts and healthcare provisions in a 30-24 vote, according to The Hill.

The bill, part of a broader package aligning with President Donald Trump’s legislative agenda, has drawn sharp criticism from hospital leaders who warn the proposed measures will have crippling effects on vulnerable populations and essential hospitals.

The proposed Medicaid cuts, which aim to generate $880 billion in savings over the next 10 years, would:

  • Impose work requirements on childless adults aged 19 to 64;
  • Restrict states from using provider taxes to fund Medicaid;
  • Penalize states for covering unauthorized immigrants;
  • Shorten the ACA’s open enrollment period; and 
  • Prevent Medicaid and CHIP funds from covering gender transition procedures for minors.

According to a partial analysis by the Congressional Budget Office, the proposed changes would strip 10.3 million people of Medicaid coverage by 2034 and leave 7.6 million people going uninsured.

“These cuts destabilize the state-federal Medicaid partnership, hamstring states’ abilities to fund Medicaid and force states to choose between raising taxes or constraining the health services that hardworking Americans expect and deserve,” Chip Kahn, president and CEO of the Federation of American Hospitals, said in a May 14 statement. “Strictly limiting provider taxes and state-directed payments will inevitably result in degraded access due to closures of services or even hospitals; the health of all Americans, regardless of their coverage, will suffer.

The legislation now faces a challenging path through the House Budget Committee and a tight timeline for a floor vote before the Memorial Day deadline set by Speaker Mike Johnson, according to The Hill.

“Fortunately, this bill has a long way to go, and opportunities remain to set it straight,” Mr. Kahn said. “Americans are looking to Congressional Republicans to protect their care; they must alter course before it’s too late.”

Advertisement

Next Up in Financial Management

Advertisement