Becker's Healthcare January 21, 2025
Republican lawmakers have outlined significant healthcare budget cuts, amounting to more than $3 trillion in savings, as part of broader efforts to extend expiring tax cuts and finance other priorities such as border security, according to Politico. The proposed reductions would see major changes to Medicaid, Medicare and the Affordable Care Act.
Six things to know:
1. The proposed Medicaid changes could save $2.3 trillion, with 86% of savings from a per capita cap, reducing the ACA expansion match rate, and lowering the Federal Medical Assistance Percentage floor below 50%, according to KFF. The per capita cap would transition Medicaid payments away from open-ended entitlement to a population-based model.
2. The Congressional Budget Office’s recent report outlines major savings...
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