Medicaid cuts could drop coverage for 20 million

A new GOP budget plan proposes slashing Medicaid by $880 billion. If passed, the cut could strip health coverage from over 20 million Americans.

The plan is part of a broader push by House Republicans to reduce federal spending. Experts say the impact would be felt across the country—especially by low-income families, seniors, and people with disabilities.

Who would be affected?

Most of the people at risk fall into one of three groups: children, older adults, or disabled individuals. These groups account for the majority of Medicaid enrollees.

The proposal would also repeal the Medicaid expansion created by the Affordable Care Act. That rollback alone would remove coverage from 17 million adults. Additional changes—like new work requirements—could push the number even higher.

What changes under the GOP plan?

Instead of matching state Medicaid spending, the federal government would cap it. Each state would get a set amount of money each year. This means states would carry more of the financial burden.

States like New York and California could see budget gaps grow. They might respond by tightening eligibility rules or cutting services. Smaller states with weaker budgets could face even harsher trade-offs.

Why it matters now

Medicaid covers more than 80 million Americans. It funds everything from prenatal care to nursing homes. Shrinking the program would hit hospitals, clinics, and local economies hard.

Governors and health officials across party lines have raised concerns. The National Governors Association warned the plan could “destabilize health systems” in many states.

What happens next?

The GOP budget is unlikely to pass the Senate in its current form. President Biden has also promised to veto any bill that cuts Medicaid. Still, the plan signals where Republican lawmakers want to go in future negotiations.

Congressional hearings begin this week. Expect major fights over Medicaid, Medicare, and the overall size of the safety net.

Key takeaways

GOP proposes $880B in Medicaid cuts over 10 years.
Over 20 million people could lose health coverage.
States would get capped funding, not matching dollars.
Expansion states would be forced to make cuts.
The proposal sets the stage for a high-stakes budget battle.

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