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Wednesday, Jun 25 2025

Full Issue

Slashing Medicaid Would Force States To Cut Provider Pay, Analysis Finds

States would have to find ways to cushion the blow from lost funding. House GOP moderates are warning that the Senate version of the bill cuts too deep for them to support. Meanwhile, a key GOP senator says Medicaid cuts could cause the GOP to lose control of the House and Senate in 2026.

States would be forced to reduce provider reimbursements to cope with the Medicaid cuts in the One Big Beautiful Bill Act of 2025, the nonpartisan Congressional Budget Office concludes in an analysis issued Tuesday. The legislation, which passed the House last month and which President Donald Trump and Senate GOP leaders are hurrying to finish as soon as this week, would reduce federal Medicaid spending by more than $800 billion over 10 years, in part by restricting provider taxes that states use to help cover their Medicaid expenses. (McAuliff, 6/24)

More than a dozen House Republicans warned they won鈥檛 support the Senate鈥檚 version of the tax and spending bill because the proposed Medicaid cuts are too steep.聽Led by Rep. David Valadao (R-Calif.), 15 other vulnerable Republicans sent a letter to Senate Majority Leader John Thune (R-S.D.) and House Speaker Mike Johnson (R-La.) saying they support the Medicaid reforms in the House version of the legislation, but the Senate Finance Committee proposal went too far.聽(Weixel, 6/24)

The American Federation of Teachers released a series of eight ads in eight states opposing the proposed tax cut bill, which includes more than $1 trillion in cuts to healthcare spending. The campaign, set to roll out across all major online platforms and streaming services over 10 days, cost at least $100,000, according to the union. The specific cost of the campaign was not disclosed. (DeSilva, 6/24)

The deep cuts to Medicaid outlined in President Trump鈥檚 budget reconciliation bill would hurt Americans suffering from conditions like chronic obstructive pulmonary disease (COPD), Rep. Maxine Dexter (D-Ore.) said Tuesday at The Hill鈥檚 鈥淢atters of Life and Breath: Championing COPD Care鈥 event. 聽COPD is a progressive lung disease that makes it difficult to breathe. It is often caused by prolonged exposure to smoke or air pollution and is one of the leading causes of death in the U.S., according to the American Lung Association. (O鈥機onnell-Domenech, 6/24)

The Senate Republican megabill is ailing. The White House thinks it has a doctor for that. Dr. Mehmet Oz, the celebrity surgeon best known for dispensing medical advice on television and now a top Trump health official, has emerged as the administration鈥檚 go-to salesman for the sweeping Medicaid overhaul at the center of the GOP鈥檚 legislative ambitions. (Cancryn, 6/24)

Sen. Thom Tillis (N.C.), one of the most vulnerable Senate Republican incumbents facing re-election in 2026, warned Senate Majority Leader John Thune (R-S.D.) bluntly in a private meeting Tuesday that deep cuts to Medicaid could cost Republicans control of the House and Senate, according to a person familiar with the conversation. (Bolton, 6/25)

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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