Becker's Healthcare February 6, 2025
In 2025, the Medicaid program is facing another period of uncertainty.
Elon Musk’s Department of Government Efficiency, launched under President Donald Trump, is ramping up its efforts to crack down on federal healthcare spending. The department is zeroing in on what it sees as wasteful expenses at CMS, potentially leading to Medicaid cuts or changes such as work requirements, stricter eligibility, or funding caps. These shifts could create financial instability for health systems that rely heavily on Medicaid reimbursements or who operate managed care plans, particularly in states where Medicaid programs are already under financial strain.
At the same time, insurers are grappling with a mismatch between Medicaid funding and the actual cost of care, especially for high-needs beneficiaries, following...
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