The recent passage of the One Big Beautiful Bill Act in the House has set the stage for significant transformations in federal Medicaid spending. This legislation is expected to lead to a reduction in federal Medicaid expenditure by approximately $793 billion, alongside a decrease in Medicaid enrollment affecting 10.3 million individuals. Furthermore, it anticipates an increase in the number of uninsured individuals by 7.8 million. Although discussions have not centered around repealing and replacing the Affordable Care Act (ACA) as they did in 2017, certain provisions within the bill specifically target states that have embraced the ACA Medicaid expansion.
A substantial portion of the proposed cuts directly affects states that have adopted the ACA Medicaid expansion. These changes account for nearly half of the total federal spending reductions outlined in the legislation. Among these measures are requirements for adults eligible through the ACA expansion to meet work and reporting criteria, increasing the frequency of eligibility reviews for this group, imposing penalties on states expanding coverage for immigrants using state-only funds, and introducing additional cost-sharing for some enrollees. These adjustments are projected to significantly alter the financial landscape of Medicaid in these states.
In light of these developments, the potential consequences of the legislation highlight a pressing need for equitable healthcare policies. Expansion states are anticipated to endure more pronounced federal spending cuts and greater enrollment losses compared to non-expansion states. Such disparities underscore the importance of fostering inclusive policies that safeguard access to essential healthcare services for all individuals. The Senate Finance Committee's modifications further emphasize the necessity of comprehensive evaluations to ensure balanced impacts across different states, promoting a healthier and more equitable society for everyone involved.