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Understanding the New Medicaid Reforms Under Trump’s 2025 Budget Plan

By T.L. Reigns

The Scoop Digital Newspaper: June 2025

The recently passed Medicaid reform bill, part of a broader $4.5 trillion tax and spending package backed by President Donald Trump, introduces significant changes to the Medicaid program.  Here’s an overview of the key provisions and the ongoing debates surrounding them:

Key Provisions of the Medicaid Reform Bill

1. Work Requirements: The bill mandates that most able-bodied adults work at least 80 hours per month to qualify for Medicaid benefits. 

2. Eligibility Verification: It introduces stricter eligibility checks, including address verification and cross-referencing with other data sources.  Additionally, retroactive coverage would be reduced from three months to one month.  

3. Federal Funding Adjustments: The federal government’s share of Medicaid funding to states would decrease by 10% for states that allow undocumented immigrants to enroll in the program.  

4. Cost-Shifting to States: Beginning in fiscal year 2028, states would be required to cover 5% of Medicaid benefit costs, with the possibility of higher percentages for states with high rates of overpayments and underpayments.  

5. Restrictions on Services: The bill prohibits Medicaid from covering gender transition services for minors and restricts funding to larger abortion providers, including Planned Parenthood.  

Projected Impact

Coverage Loss: The Congressional Budget Office estimates that the proposed changes could result in at least 7.6 million fewer people having health insurance by 2034.  

Cost Savings: The reforms are projected to reduce the federal deficit by $625 billion over ten years.  

Political Reactions

Republican Support: Many Republicans argue that the reforms are necessary to reduce government spending and ensure that Medicaid serves its intended purpose. 

Democratic Opposition: Democrats contend that the changes would harm vulnerable populations, leading to increased uninsured rates and reduced access to healthcare. 

Intra-Party Disagreements: Some centrist Republicans express concern that the cuts are too steep and could negatively impact their constituents.  

Conclusion

The Medicaid reform bill represents a significant shift in U.S. healthcare policy, aiming to reduce federal spending while imposing stricter eligibility and service provisions.  The debate continues as lawmakers weigh the potential benefits of deficit reduction against the risks of increased uninsured rates and reduced access to care. 

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