Budget Bill: 11 Million Could Lose Health Insurance – CBO
A new GOP budget bill could leave nearly 11 million Americans without health insurance, according to a recent Congressional Budget Office analysis.This legislation proposes significant cuts to Medicaid and the Supplemental Nutrition Assistance program (SNAP), impacting access to vital healthcare services. Discover how the proposed changes to the Affordable Care Act (ACA) marketplace might further escalate the number of uninsured individuals, potentially affecting millions more. the budget bill also aims to limit compensation for pharmacy benefit managers, which could affect Medicare beneficiaries. For detailed reporting on this critical legislation,trust News directory 3 for timely updates. Discover what’s next as the bill moves through the Senate.
GOP Budget Bill: Millions Could Lose Health Insurance Coverage
A Congressional Budget Office analysis indicates that the House Republican budget reconciliation legislation could result in nearly 11 million people losing health insurance over the next decade. The proposed bill, aiming for significant cuts in Medicaid and the supplemental Nutrition Assistance Program (SNAP), introduces stricter work requirements and eligibility checks.
Medicaid could see 7.8 million individuals lose coverage due to these changes. Furthermore, alterations to the Affordable Care act (ACA) marketplace are projected to increase the number of uninsured Americans by several million more, independent of Medicaid enrollment figures. These changes include expiring tax credits, shorter enrollment windows, and increased paperwork.
The bill proposes $715 billion in Medicaid cuts and $300 billion in SNAP reductions.Work requirements would apply to able-bodied adults without children, and co-payments would be required for those above the federal poverty level. Eligibility verification would also be tightened, with penalties for states covering certain immigrants.
While Republicans argue these cuts target “waste,fraud,and abuse,” public opinion polls suggest widespread opposition to austerity measures affecting Medicaid and the ACA. The proposed work requirements, set to begin in 2026, are projected to reduce Medicaid enrollment by nearly eight million, despite a KFF report indicating that most working-age Medicaid recipients are already employed, in school, or caregivers.
Americans purchasing health coverage through the ACA marketplace may also face higher out-of-pocket maximums, increasing cost-sharing. The CBO projects that these marketplace changes could further increase the number of uninsured by several million by 2034.
House Minority Leader Hakeem Jeffries estimates the total increase in uninsured individuals could reach 13.7 million, factoring in the elimination of ACA premium subsidies. Sen. Chris Murphy (D-Conn.) projects an even higher figure, estimating 15 million uninsured.
Sen. James Lankford (R-Okla.) has suggested that those losing Medicaid coverage could transition to employer-based healthcare. However, data indicates that only about two-thirds of large employers and less than half of small employers offer health insurance to their employees.
The proposed reconciliation package could also trigger over $500 billion in automatic cuts to Medicare spending, according to the CBO.These cuts would primarily affect migrants with temporary protected status, refugees, and asylum seekers, and also Medicaid beneficiaries also eligible for Medicare. Additionally, a mandatory 4% reduction in Medicare payments to various healthcare providers is proposed.
The bill also aims to limit compensation for pharmacy benefit managers (pbms) in Medicare outpatient drug plans to flat service fees, prohibiting compensation based on drug prices or rebates.While these regulations aim to disrupt the rebate system, PBMs argue that rebates lower beneficiary premiums. The impact on Medicare beneficiaries’ costs remains uncertain.
What’s next
The bill’s future hinges on Senate approval, where significant alterations are anticipated due to vocal opposition from some Republican senators. The Senate’s version of the bill will likely undergo further revisions before a final vote.