Republicans are weighing new healthcare spending cuts as part of a broader effort to fund a budget package that could include up to $200 billion for the Iran war and immigration enforcement, according to a March 30 report from Axios.
The early stage discussions mark a potential revival of contentious healthcare policy changes with significant implications for coverage, costs and hospital finances.
Four things to know:
1. ACA subsidy changes are back on the table. One proposal would fund Affordable Care Act cost-sharing reductions, according to the report. The Congressional Budget Office projected that the policy would reduce gross benchmark premiums by 11% but increase the number of uninsured individuals by an average of 300,000 annually through 2035. The ACA-related proposal would cut subsidies for certain individuals, increasing premium costs while saving the federal government nearly $36 billion, according to the CBO.
2. Medicare, Medicaid policies back in focus. Lawmakers are weighing potential Medicare changes — including site-neutral payment reforms and efforts to curb Medicare Advantage upcoding — while remaining cautious about revisiting major Medicaid cuts enacted in 2025, according to the report. However, some previously proposed policies, such as limiting coverage for undocumented immigrants, could resurface.
3. Prior legislation is already hurting providers. The One Big Beautiful Bill Act, signed into law last summer, is projected to reduce federal Medicaid spending by $911 billion over 10 years and lead to significant coverage losses, with hospitals facing up to $25 billion in annual revenue reductions, according to an analysis Kodiak Solutions published in November. The OBBBA’s Medicaid provisions — including work requirements, more frequent redeterminations and new limits on state-directed managed care payments — have drawn particular scrutiny from providers.
4. The timeline for action is aggressive. Lawmakers aim to pass legislation within 60 to 90 days, setting up a fast-moving policy debate with major implications for coverage, reimbursement and hospital finances, according to Axios.
The post Republicans eye further healthcare cuts: Report appeared first on Becker's Hospital Review | Healthcare News & Analysis.
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