As the effects of the largest Medicaid cuts in U.S. history begin to ripple through hospitals, clinics, and homes across the country, Senate Minority Leader Chuck Schumer has introduced a sweeping new proposal to undo the damage. His bill, the Protecting Health Care and Lowering Costs Act, would reverse the healthcare reductions passed by Republicans earlier this year and permanently extend key Affordable Care Act (ACA) tax credits.
Schumer warned that without urgent action, up to 15 million Americans will lose health coverage, and state and local governments will absorb billions in healthcare costs.
What the proposal would do
The bill aims to address the fallout of what Schumer has dubbed the GOP’s “Big Ugly Betrayal” of American healthcare. The proposal would:
- Reverse all Medicaid cuts enacted in the GOP budget deal
- Permanently extend ACA premium tax credits, preventing major increases in monthly costs
- Stabilize rural and urban hospitals facing potential closures and layoffs
- Protect mental health, home health, and older care programs impacted by federal funding losses
Schumer introduced the legislation at a press conference this week, surrounded by healthcare workers, hospital executives, and advocates. He called the Republican-led cuts “a crisis in motion,” citing rising premium costs, reduced access to care, and deepening strain on emergency rooms and frontline staff.
Nationwide impact: Hospitals brace for loss
The Republican-backed budget slashed more than $1 trillion in federal healthcare spending, largely to fund corporate tax cuts. The Medicaid program — which supports children, older people, those with disabilities, and low-income families — took the largest hit.
In states across the country:
- Rural hospitals are preparing for layoffs and possible shutdowns
- Community health centers warn of reduced services and longer wait times
- State and county budgets face new shortfalls as federal Medicaid funding disappears
- Premiums for ACA enrollees could spike by 40% or more without renewed tax credits
In New York, for example, state officials estimate a $13.5 billion loss in federal healthcare funds. Hospitals in Syracuse will lose up to $65 million, and similar cuts are expected across other major metro areas nationwide.
Voices from the healthcare frontlines
Healthcare professionals say the cuts could cause long-term structural damage to the American healthcare system:
“When millions lose health coverage, we will all feel it,” said Meredith Price, a hospital operations executive. “Reduced services, longer wait times, and overwhelmed emergency rooms will become the new normal.”
“Medicaid covers 5 out of 8 nursing home residents and nearly half of U.S. births,” said Mark Spadafore, a union leader representing thousands of healthcare workers. “Cutting this program isn’t just short-sighted — it’s dangerous.”
In addition to hospital concerns, home health and elder care providers are bracing for a $1 billion Medicare cut, which experts say could gut programs that help older people age at home — a model that is both more humane and cost-effective.
A budget shift with human costs
The Schumer-backed legislation responds to rising political and public pressure over the impact of the Republican healthcare rollback. While the GOP’s budget promised fiscal responsibility, critics say it has instead destabilized vital care systems in every corner of the country.
- Children face gaps in routine care
- Retirees risk losing home-based support
- Low-income families could see premiums double without subsidies
“This is not just a healthcare crisis,” Schumer said. “It’s an economic crisis. When hospitals close and services disappear, communities suffer. It’s time to fix what never should have happened.”
What comes next
The Protecting Health Care and Lowering Costs Act will be formally introduced in the Senate this week with the support of the full Democratic caucus. Whether Republicans — some of whom are already facing backlash from local officials and hospitals — will support a rollback remains unclear.
Healthcare groups and advocacy organizations are mobilizing in support of the legislation, warning that the clock is ticking. ACA premium tax credits are set to expire at the end of 2025, and without intervention, healthcare costs could spike for millions of Americans in early 2026.
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