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Morning Briefing

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Friday, May 30 2025

Full Issue

Overshadowed By Medicaid Cuts, Tax Bill Proposes Significant ACA Reforms

Like Medicaid, a large portion of those enrolled in an Affordable Care Act insurance plan voted for President Donald Trump. Changes to the program proposed in Republicans' tax bill could create a backlash in the upcoming elections. Meanwhile, senators say they will be taking a second look at the changes to Medicaid in the legislation.

Enrollment in Affordable Care Act marketplace health plans has more than doubled since 2020, and most of that growth has been in states won by President Trump. House Republicans鈥 legislative agenda could cut that by one-third and make the insurance more expensive. (Wilkerson, 5/30)

The Senate will soon be considering the massive legislation containing President Trump's second-term agenda after House Republicans passed it last week, following days of negotiations over changes to Medicaid, among other key issues.聽Senate Republicans will put their "imprint" on the bill, as Senate Majority Leader John Thune of South Dakota put it, and some pointed to changes to Medicaid as a possible red line for those who are undecided. (Hubbard and Yilek, 5/29)

All estimates depend on assumptions. The CBO determined that 4.8 million would lose Medicaid insurance if the House bill became law. The House GOP has concluded that this means these people refuse to work and are therefore 鈥渃heating the system.鈥 Without access to the full CBO analysis, that鈥檚 a big assumption. The CBO appeared to predict what might happen under the new law 鈥 not what people are doing now. But it鈥檚 ironic that Johnson is relying on the CBO for this estimate when he鈥檚 also attacking the agency for its deficit forecast for the same bill. (Kessler, 5/30)

President Donald Trump鈥檚 favorite celebrity doctor is standing behind his new boss on an issue that has sparked opposition even among some Republicans. Dr. Mehmet Oz, the Trump-appointed administrator of the Centers for Medicare and Medicaid Services, ... argued in an interview on The Conversation with Dasha Burns that the Medicaid work requirements in the sprawling legislation will 鈥渇uture proof鈥 the program 鈥 in line with administration goals to protect social services. (Svirnovskiy, 5/30)

Early battle lines are forming over a centerpiece of the sprawling domestic policy bill that House Republicans narrowly passed, with Medicaid spending cuts emerging as a flash point that could define the 2026 midterm elections. Democrats are fine-tuning their message as they blast the legislation, which now heads to the GOP-led Senate, as a tax cut for the wealthy that would be funded by cutting health care, after Republicans broadly promised they wouldn't cut Medicaid. (Kapur, 5/29)

Medicare 鈥

Two agencies in the federal health department are plotting what officials say will be an ambitious tech modernization push to promote better care for people on Medicare and beyond. And they鈥檝e tapped some veteran technology entrepreneurs to lead the charge. (Aguilar, 5/30)

A coalition of healthcare trade associations and companies representing 550 providers and accountable care organizations is pleading with Congress to restore incentive bonuses for Medicare alternative payment models. The American Medical Association, Boston-based Mass General Brigham and others wrote congressional leaders Thursday expressing concern that failure to renew bonus payments will worsen providers鈥 financial instability, particularly in underserved regions. (Early, 5/29)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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