Debate Intensifies Over Medicaid Coverage Impact in Proposed Budget

https://icaro.icaromediagroup.com/system/images/photos/16536264/original/open-uri20250601-18-a1ekhu?1748809983
ICARO Media Group
Politics
01/06/2025 20h27

### Controversy Erupts Over Claims Surrounding Medicaid Cuts in Proposed Budget

In recent statements, both Russ Vought, former Director of the Office of Management and Budget under Donald Trump, and House Speaker Mike Johnson have asserted that the House's proposed budget would not result in Medicaid coverage losses. Vought and Johnson have especially emphasized that Medicaid will remain intact unless beneficiaries opt out of the program.

Vought, appearing on CNN's "State of the Union," insisted that "no one will lose coverage as a result of this bill," arguing that current Medicaid spending includes a significant proportion of "improper" payments. However, according to the Centers for Medicare and Medicaid, only 7.66% of 2024 Medicaid payments were categorized as improper, a figure that includes overpayments, underpayments, and instances where there was insufficient information to determine payment accuracy.

Johnson echoed Vought’s assertions, claiming on NBC's "Meet the Press" that “there are no Medicaid cuts in the big, beautiful bill.” He further insisted that individuals “will not lose their Medicaid unless they choose to do so.” Both officials argue that the new bill, which introduces work requirements for beneficiaries aged 18-64 among other changes, would streamline and preserve the existing social safety programs.

Contradicting these claims, experts and several organizations provide a starkly different outlook. The Congressional Budget Office (CBO) anticipates that the proposed budget would slash federal Medicaid spending by $723 billion, resulting in an estimated 7.6 million people losing their coverage by 2034. Factors contributing to these losses include newly introduced work requirements and more rigorous eligibility checks.

Jennifer Tolbert from the Kaiser Family Foundation indicated that similar work requirements in other states have already led to coverage losses, particularly affecting those who face challenges in meeting administrative reporting demands. The Center for Budget and Policy Priorities estimates even more severe impact, suggesting that up to 14.4 million people could lose Medicaid coverage over the next decade due to these proposed changes.

Historical evidence underscores the importance of Medicaid in improving health outcomes. A study by the National Bureau of Economic Research found Medicaid expansions resulted in a 12% increase in enrollment and a 2.5% decrease in mortality among low-income adults, with new enrollees being 21% less likely to die compared to before having coverage.

In summary, while Vought and Johnson's reassurances suggest stability and continuity for Medicaid under the proposed budget, expert analyses and historical data paint a grimmer picture, indicating significant coverage losses and adverse health impacts for millions of Americans.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related