Trump's health care bill proposes significant cuts totaling $1.1 trillion over a decade, affecting millions
From CNBC: 2025-07-01 18:09:00
President Donald Trump’s proposed health care bill aims to make significant changes, cutting $1.1 trillion in health care spending over the next decade. The bill would result in 11.8 million people losing health insurance by 2034, with Medicaid being the most affected. About 17 million people could lose coverage due to the bill and other policy changes.
The bill includes a new work requirement for certain Medicaid beneficiaries, projected to save $325 billion over a decade. However, this requirement could disproportionately affect older adults, rural communities, and seasonal workers. AARP opposes a provision disqualifying those who fail to meet work requirements from receiving premium tax credits through ACA Marketplaces.
Major cuts in Medicaid savings will come from capping and reducing state-imposed provider taxes, aiming to save $375 billion. Critics argue this could threaten rural hospitals and health centers, potentially leading to closures. The bill faces further challenges in the House where Republicans have raised objections to the legislation. Health-care providers in rural areas, like critical access hospitals, heavily rely on Medicaid funding. Without it, closures of rural hospitals, job losses, and limited access to care for patients are expected. Senate Republicans included a $25 billion fund in the bill to help rural hospitals, but experts say it’s not enough to offset the cuts.
On the other hand, Senate Republicans granted a victory to drugmakers by exempting more medicines from Medicare drug price negotiations. The ORPHAN Cures Act will now exclude drugs used for multiple rare diseases from price talks, encouraging investments in rare disease treatments. However, some groups argue this move undermines progress in lowering drug prices and benefits pharma profits.
Read more at CNBC: How Trump bill Medicaid cuts will impact U.S. health care