Florida Sen. Rick Scott (R) and several Republican colleagues have proposed an amendment to President Donald Trump‘s healthcare bill that could significantly cut Medicaid spending.
What Happened: The amendment, if passed, would restrict the expansion of Medicaid under the Affordable Care Act, also known as ObamaCare, reported The Hill on Sunday. This could lead to an additional $313 billion cut in Medicaid spending by blocking able-bodied adults without dependent children in Medicaid expansion states from receiving the enhanced 9-to-1 Federal Medical Assistance Percentage (FMAP).
A preliminary analysis by the Congressional Budget Office (CBO) estimated that the Senate bill would cut Medicaid spending by $930 billion, even without Scott's proposed amendment. If the amendment is adopted, it could slash future Medicaid spending by an additional $1.24 trillion. Scott's office claims the amendment alone would save $313 billion over the next decade.
Scott, along with Sen. Mike Lee (R-Utah) and Sen. Ron Johnson (R-Wis.), have been actively persuading Republican colleagues to vote for the amendment. Senate Majority Leader John Thune (R-S.D.) has pledged his support for the amendment.
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Why It Matters: The proposed Medicaid cut is part of a broader Republican effort to reform healthcare spending. The move comes amid growing concerns about the sustainability of Medicaid and other social welfare programs, particularly in light of the recent warnings that the Social Security and Medicare funds could run dry earlier than expected.
Earlier this year, House Speaker Mike Johnson (R-La.) defended the GOP’s proposed Medicaid cuts, arguing that those who lose Medicaid will do so by personal choice. However, the proposed cuts have also sparked internal divisions within the Republican party, with some members warning that drastic reductions could harm millions of Americans who rely on the program.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
