Medicaid Cuts: Home Care at Risk | Senate GOP Plan
Senate Republicans’ Medicaid cuts are poised to inflict significant damage on the home care industry, as the proposed plan contains deeper cuts than those previously approved by the House. This could intensify existing challenges. The Senate Finance Committee’s amendment introduces work requirements for adults with older children, alongside restrictions on provider taxes. This proposal,lacking specific provisions for home- and community-based services,puts the sector at risk. Approximately 40% of personal care workers depend on Medicaid, highlighting the potential impact. Learn about the impact of these proposals and the potential for states to reduce benefits. Read the latest analysis, available from news Directory 3, on the impending vote and the broad repercussions. Discover what’s next …
Senate Republicans’ Medicaid Proposal Threatens Home Care Industry Role
Updated june 19, 2025
Senate Republicans have introduced a plan for Medicaid cuts exceeding those previously passed by the House, drawing concern from the home-based care sector. The Senate Finance Committee’s amendment includes work requirements for adults with older children and restricts provider taxes beyond the house proposal.
Dr. Steven Landers, CEO of The National Alliance for Care at Home, said the proposal, while lacking specific language on home- and community-based services, coudl intensify industry challenges. He noted the pressure on the Medicaid program and the potential for states to cut rates,benefits,innovation,or waiver programs.
According to PBS, the Senate plan aims to lower provider taxes from 6% to 3.5% by 2031 and impose work requirements for parents with children older than 14. Landers also pointed out that medicaid scalebacks could indirectly affect the home-based care community, as approximately 40% of personal care workers rely on Medicaid.
The Home Care Association of America’s advocated tax policies, including credits for families seeking home care, are absent from the updated draft.Lee said that while these policies are unlikely to materialize now,future opportunities may arise.
Despite these shortcomings, Lee noted positive elements in the House bill, such as an expanded standard deduction for seniors and increased individual care.
Landers anticipates the Senate proposal, despite being more stringent than the House bill, will likely pass, driven by the political imperative to advance the president’s agenda.
“We’re seeing continued pressure within this legislation on the Medicaid program,” landers said. “[There is] no line item related to home- and community-based services and Medicaid… So we think there’s a lot at risk.”
What’s next
The Senate will likely vote on the proposed medicaid cuts in the coming weeks, with potential ramifications for the home-based care industry and access to care for both workers and recipients.