Skip to site menu Skip to page content

Daily Newsletter

13 May 2025

Daily Newsletter

Republicans’ proposed Medicaid cuts met with dismay

Non-partisan think tank CBO estimates that the plans could result in 13.4 million Americans losing their health insurance by 2034.

Ross Law May 13 2025

The Trump Administration in the US has introduced legislation outlining plans for deep cuts and limitations to Medicaid, which observers warn could impact millions of America's most vulnerable citizens over the next decade.

The budget reconciliation bill, released late on 11 May by the US Committee on Energy and Commerce, estimates that proposed cuts to the health insurance programme will save the federal government around $900bn over the next decade.

Set for a debate in a committee hearing on 13 May, the proposed amendments to Medicaid include new work requirements for claimants. Observers warn these changes could inadvertently kick qualified claimants off the programme due to increased administrative hurdles, stricter eligibility checks, and a ban on using Medicaid funding for gender-affirming care for minors.

By analysing policy options previously touted by Republicans to reduce Medicaid funding, non-partisan think tank the Congressional Budget Office (CBO) estimates that the latest proposals could cut the number of people eligible for coverage by around 8.6 million over the next decade and result in up to 13.7 milllion Americans losing their health insurance by 2034.

Commenting on the bill, the Association of American Medical Colleges (AAMC) expressed "deep concern" over the proposed plans, stating that they would ultimately limit coverage and access to care for “many of the over 70 million Americans – specifically children, older adults, individuals with disabilities, and those in rural and underserved communities – who rely on Medicaid for health care coverage”.

The AAMC continued: “As the committee considers its budget reconciliation bill, it is imperative that policymakers prioritise the health of all Americans and soundly reject policies that would specifically lead to the loss of health care coverage for 8.6 million people and undermine the financial stability of safety-net providers.” 

The planned funding cuts also touch on Planned Parenthood, a US nonprofit that provides services such as sexual and reproductive healthcare, primary care, and cancer screenings.

Patty Murray, Democratic senator for Washington, said that defunding Planned Parenthood would amount to “defunding basic healthcare”.

“Defunding Planned Parenthood means ripping away millions of people’s ability to get cancer screenings, birth control, and lifesaving reproductive health care,” Murray wrote.

“Despite what Republicans try to claim, women cannot just ‘go somewhere else’ if Planned Parenthood shuts down – Planned Parenthood provides care to more than two million people every single year and for many people, those centres are their only source of healthcare.”

Calling the overall plans “politically suicidal” in an op-ed for the New York Times, Josh Hawley, Republican senator for Missouri, pointed out that 21% of Missourians benefit from Medicaid or CHIP, an associated insurance programme for lower-income children, with many of the state’s rural hospitals and health providers reliant on the programmes’ funding to “keep their doors open”.

“If Congress cuts funding for Medicaid benefits, Missouri workers and their children will lose their health care,” Hawley wrote.

“And hospitals will close. It’s that simple. And that pattern will replicate in states across the country.”

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close