Trump’s Federal Budget Cuts $1 Trillion from Healthcare, Worsens Medicaid Outlook
TL/DR –
The Trump federal budget has cut healthcare spending by over $1 trillion for the next decade, with impacts expected especially for Medicaid-insured patients and related marketers. Approximately 12 million adults on Medicaid could lose their health insurance by 2034 due to the introduction of a federal work requirement for adults aged 19-64 without children, alongside a cut in federal funding for state Medicaid programs of around $200 billion. Over 300 rural hospitals may face service reductions or closure with a decline in rural-area federal Medicaid spending, despite a 5-year $50 billion rural health fund for state grants starting in 2026.
Trump’s Federal Budget Cuts $1 Trillion from Healthcare Over Next Decade
The recent Trump federal budget has made significant cuts to healthcare spending, eliminating more than $1 trillion over the coming decade. This large-scale bill triggers a wave of repercussions across the US healthcare landscape, markedly affecting Medicaid-insured patients and Medicaid-affiliated marketers.
Key Impacts of Budget Cuts on Medicaid
- Around 12 million US adults dependent on Medicaid could lose their health coverage by 2034, according to the Congressional Budget Office (CBO). This is primarily due to a novel federal work requirement that mandates adults aged 19-64 without children to substantiate their employment, volunteer work or enrollment in educational programs.
- Moreover, the federal allocation to state Medicaid programs will experience a cut of approximately $200 billion. This comes alongside stricter Medicaid eligibility prerequisites.
- Over 300 rural hospitals face the risk of service downsizing or even closure, as per a report from Cecil G. Sheps Center for Health Services Research quoted by KFF Health News.
- A $50 billion rural health fund for state grants is to be introduced over five years starting in 2026. However, it is insufficient to counterbalance the $155 billion reduction in federal Medicaid spending in rural areas, as estimated by KFF.
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