Debate Arises Over Potential Impact of GOP Budget Bill on Health Insurance Coverage
House Republicans and Democrats are currently embroiled in a dispute regarding the potential impact of the newly passed budget bill on the health insurance coverage of millions of Americans.
Democrats claim that the legislation could result in up to 13.7 million individuals losing their health coverage, a large portion of whom are Medicaid recipients. However, this assertion is contested by Republicans.
Rep. Ken Calvert (R-CA) clarified in a statement, “The Budget Resolution passed today does not specify any cuts to federal programs. I want to make it clear that I do not support cuts to Social Security, Medicare, and the safety net programs our vulnerable Americans rely on.”
Contrarily, the Congressional Budget Office (CBO), a nonpartisan entity responsible for evaluating the economic implications of legislative proposals, offers a different perspective.
Under the new bill, Medicaid recipients will face more stringent work requirements, necessitating proof of at least 80 hours of work or school attendance in the month prior to enrollment. Additionally, states may extend this requirement up to a year before enrollment.
The legislation also proposes considerable reductions in discretionary spending allocated to the Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS), the agencies tasked with managing these programs.
The CBO projects that these changes will result in at least 7.6 million people being excluded from Medicaid coverage.
Further analysis reveals that alterations to the Affordable Care Act (ACA) would contribute to an increase in the uninsured population.
The Inflation Reduction Act of 2022, enacted by President Joe Biden, introduced tax credits to assist low- and middle-income Americans in purchasing ACA plans. These credits are due to expire at the year’s end, with the current Republican bill opting not to renew them.
The CBO anticipates that many beneficiaries of these ACA tax credits will forgo insurance due to the increased costs, contributing to the forecast that 13.7 million people may lose coverage.
Rep. Alexandria Ocasio-Cortez (D-NY) emphasized, “Thirteen point seven million Americans are the number of people in this country whose health care are going to be stripped in this bill. Now, Republicans are going to try to tell you every distraction in the book from that essential number.”
Potential repercussions of changes to Medicaid and the ACA extend beyond those losing coverage, potentially affecting healthcare access for those still insured.
Over 30% of rural hospitals in the United States face closure risks due to financial difficulties, with many relying heavily on Medicaid payments for operations.
Rep. Mariannette Miller-Meeks (R-IA), a supporter of the bill, may witness the closure of four hospitals in her constituency.
According to the Kaiser Family Foundation, which specializes in public health polling, 76% of Americans oppose significant Medicaid cuts, and 65% are against reducing ACA tax credits.
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