Republicans say they are only after fraud and inefficiency. Democrats say the GOP aims to cut profits for the most vulnerable.
Medicaid, a health insurance program for low-income Americans, finds himself at the heart of the scrum between Republicans and Democrats, funding President Donald Trump’s second term agenda.
Republicans are urging Medicaid to ward off fraud and waste, aiming to improve government efficiency.
Democrats have accused Republicans of trying to cut Medicaid funds to offset tax cuts, pushing them to avoid changes to the program.
Republicans want to cut their spending
The U.S. House of Representatives passed a budget blueprint on February 25th, which outlines plans to fund the government.
The resolution directs various House committees to recommend spending cuts of at least $1.5 trillion and tax cuts of $4.5 billion over the next year. It also calls for an increase in the country’s debt cap of $4 trillion.
Former House Speaker Nancy Pelosi (D-Calif) drew a straight line between proposals for the GOP budget and potential Medicaid cuts.
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Democrats have been warning of Medicaid cuts even before the budget blueprint was released on February 12th.
Within days, Democrats held a messaging campaign and created a television ad accusing Republicans of trying to sabotage Medicaid.
House Democrat leader Hakeem Jeffries (DN.Y.) seized the issue as a leverage point.
“We are fleeing (Republicans) from a healthcare perspective, especially as they relate to Medicaid,” Jeffries said in a March 5 leadership call.
“Hospital Democrats stand behind Medicaid and Americans. Republicans are trying to enact the biggest cuts in Medicaid in American history, and we need them to put pressure on them in communities across the country,” Jeffries said.
Republicans have repeatedly said they have no intention of doing so.
A day after the budget resolution was passed, reporters asked Trump if Medicare or Medicaid would be included in the proposed spending cuts.
“I’ve said that many times, you shouldn’t ask me that question,” Trump said. “We won’t touch it.”
Healthcare workers will transport patients to an ambulance in Brooklyn, New York on October 7, 2020. Chung I Ho/The Epoch Times
“Now we’re going to look for fraud,” the president added.
Trump and other Republicans have been providing that statement for weeks, but Democrats haven’t bought it.
“The levels of abuse and waste within Medicaid are not worthy of cutting billions of dollars from the program,” the Democrat senator said in their letter.
dilemma
To meet its spending reduction goals, Republicans have appointed a House Committee on Energy and Commerce, finding $880 billion in savings over the next decade. The committee’s proposal is March 27th.
Even if all of that was eliminated, the committee has yet to fully take away its $880 billion target.
Is there enough scams in Medicaid to make up for the difference?
Rep. Nicole Mariotakis (RN.Y.) argued that on March 11, while also accusing Democrats of misrepresenting Republican intentions.
Other ideas
Another idea that came to mind by lawmakers is to lower the rates the federal government has stated for Medicaid spending. Refunds range from 50% to 76.9%, depending on the state median and other factors.
The second idea is to set a cap on how much the federal government pays the state per registrant.
The blank check will be performed on July 18, 2011 via a printer at the US Treasury Department Printing Facility in Philadelphia. William Thomas Kane/Getty Images
House Speaker Mike Johnson (R-La.) said Republicans don’t want to cut the state’s Medicaid reimbursement rates or impose a per capita cap on Medicaid payments. “We’re talking about finding efficiency in every program. Rather than cutting down the benefits of the people who deserve them, Johnson said in a February 26 interview with CNN.
Energy and Commercial Chair Brett Guthrie (R-KY.) has yet to outline plans to cut spending by $880 billion.
The Senate is currently considering its 2026 budget.
Johnson hopes to pass the law in the House by Easter on April 20, or Memorial Day on May 26, and the latest Memorial Day.
Jackson Richman, Joseph Lord and Arjun Singh contributed to this report.
