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Morning Briefing

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Thursday, Jun 5 2025

Full Issue

Tax Bill Would Slash $1 Trillion From Medicaid, Health Care System: CBO

Analysis from the nonpartisan Congressional Budget Office estimates that $1 trillion would be cut over a decade, with Medicaid budget losses making up the biggest part -- despite President Donald Trump's claims that the bill would make “no cuts” to the social safety net program. Also in the news: ACA tax credits, Medicare drug prices, and more.

The Republican tax-and-spending-cuts legislation speeding through Congress would take more than $1 trillion out of the healthcare system over a decade, according to an analysis the Congressional Budget Office published Wednesday. ... In healthcare, Medicaid would be subject to the lion's share of the cuts and see its federal budget diminish by $864 billion. The work requirement provisions alone would reduce spending by $344 billion. (McAuliff, 6/4)

Donald Trump publicly resisted Medicaid cuts — until his budget director, Russell Vought, convinced the president that reductions to health coverage for low-income people, embedded in the Republican tax bill, were just weeding out fraud and abuse. Trump has readily adopted that rhetoric, repeatedly declaring that his signature bill contains “no cuts” to the social safety program, even as the non-partisan Congressional Budget Office estimates at least 7.6 million people would become uninsured if the bill takes effect. (Cook, 6/4)

Stricter Medicaid eligibility checks look destined to be included in President Donald Trump-backed reconciliation legislation charging through Congress, dubbed the One Big Beautiful Bill. New work requirements are likely to make it more difficult for current Medicaid enrollees to keep their insurance coverage, leading to a push aimed at exempting managed care plans from a 1991 law restricting their ability to text members. (Tong, 6/4)

Affordable Care Act and Medicare —

Leaders at state-based insurance exchanges are expressing concern about the impact that the Republicans' "Big Beautiful Bill" could have on people enrolled in Affordable Care Act (ACA) plans. In a letter (PDF) sent to key Senate healthcare leaders on both sides of the aisle, the directors warn that proposals in the bill would drive up costs for the privately insured, and the end of the premium tax credits would likely push more than 4 million people off of their coverage. (Minemyer, 6/4)

Senate Republicans on Wednesday discussed the need to cut out waste, fraud and abuse in Medicare to achieve more deficit reduction in President Trump’s landmark bill to extend the 2017 tax cuts, provide new tax relief, secure the border and boost defense spending. The House-passed bill would cut more than $800 billion from Medicaid and the Children’s Health Insurance Program, but some GOP lawmakers argue that other mandatory spending programs, such as Medicare, should also be reviewed for “waste” to further reduce the cost of the bill. (Bolton, 6/4)

As President Trump touts his own executive orders to lower drug prices, the Medicare drug price negotiations begun during the Biden administration are continuing behind the scenes. Two companies – Novo Nordisk and Amgen – confirmed to NPR that they had received opening price offers from the government, kicking off bargaining that could last through October. The Department of Health and Human Services did not respond to a request for comment on the status of negotiations. (Lupkin, 6/4)

Also —

In 2022, Christina Schnabel was a single mom in Hendersonville barely making ends meet. She lived in public housing and made do with help from services like Medicaid and SNAP. Her son suffered from chronic gastrointestinal symptoms. That changed after she started volunteering with a local nonprofit called Caja Solidaria. The organization was one of the community partners in the Healthy Opportunities Pilot, a Medicaid program that tackled nonmedical health needs of low-income North Carolinians. (Vitaglione and Baxley, 6/5)

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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