House Republicans Budget Cuts Threaten Deep Medicaid Reduction

(MENAFN) House Republicans encountered a significant challenge on Thursday, tasked with slashing $1.5 trillion from the budget, potentially cutting hundreds of billions from Medicaid to fund President Trump’s tax cuts, according to reports.

Despite claims by House leaders that Medicaid, which provides health care to over 70 million low-income individuals, would not face severe reductions, it remains uncertain how they plan to meet the deep budget cuts approved earlier this month without making substantial cuts to Medicaid.

The budget resolution has directed the House Energy and Commerce Committee, which oversees both Medicare and Medicaid, to identify at least $880 billion in savings over the next decade.

Since Medicare, which serves seniors, is not slated for cuts, appears to be the primary target for these savings.

The Congressional Budget Office, a nonpartisan entity, has warned that it would be nearly impossible to meet such savings goals without cutting Medicaid. Medicaid makes up 93% of the committee’s non-Medicare mandatory spending, leaving few viable alternatives.

Programs outside Medicare and Medicaid under the committee’s purview account for just $581 billion in projected spending over the next 10 years. Eliminating all of these programs would still fall short of the $880 billion savings target, according to the report.

Republican leaders have stressed their commitment to safeguarding benefits for Medicaid recipients, suggesting structural reforms as a potential means of cutting costs without reducing individual benefits.

“We're going to protect the benefits that everyone is legally entitled to, the beneficiaries who have a legal right to that; it will be preserved,” remarked House Speaker Mike Johnson on April 10.

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