Senate Big Beautiful Bill Contains Needed Medicaid Reforms

The Senate today voted 51 to 50 to pass the Reconciliation package known as the “One Big Beautiful Bill,” following House passage in May. CEI health care policy expert Jeremy Nighohossian praised the bill for implementing much needed reform to Medicaid – specifically, the attempt to address runaway spending driven by state policies through addition of a work requirement for Medicaid eligibility, restrictions on usage of provider taxes to fund Medicaid, modifications to open enrollment for Obamacare exchanges, and also expansion of Health Savings Accounts.

“Medicaid’s expansion over the past five years has defied all expectations and estimates, largely due to states’ abuse of financing formulas and misaligned incentives,” said Nighohossian. “Congress is right to confront that growth given the US’s deteriorating debt situation. The Senate’s bill includes stronger provisions tackling the exploitation of provider taxes, which leaders of both parties have acknowledged. The House should maintain the hard line against provider taxes as it deliberates.

“The enrollment provisions will help ensure both Medicaid and the ACA focus on the people who are in most need of help and whom these programs were designed for.”

Next up, the two bills have different provisions and will need to be unified before President Trump can sign it into law.