TL/DR –
The Senior Citizens League (TSCL) has provided an update on proposed changes to Medicaid that could affect millions of seniors in the US. These changes include substantial cuts to Medicaid funding, with the savings set to offset the cost of President Trump’s desired tax cuts – a move that the Congressional Budget Office has said will increase the national debt by $2.4 trillion. Other key changes include the introduction of nationwide work requirements for those on Medicaid deemed fit to work, the potential for 11 million people to lose health coverage, and significant cuts to the National Institute on Aging’s budget.
TSCL May 2025 Monthly Washington Update: Key Changes to US Healthcare Policy
Staying updated on the latest happenings in Washington, D.C. can be challenging. Our focus in this May 2025 update is the potential changes to Medicaid, President Trump’s effort to lower prescription drug prices, and proposed cuts to the National Institute of Aging’s funding.
Medicaid – Are Cuts Ahead?
The main talking point in Washington is President Trump’s impending bill which includes significant reductions in Medicaid spending. The proposed cuts would offset the cost of the President’s desired tax cuts. However, the cuts to Medicaid won’t fully finance the tax cuts with projections showing an increase in the national debt by $2.4 trillion.
Republican lawmakers argue the cuts will eliminate waste, fraud, and abuse, while Democrats, and some Republicans, anticipate the changes will cause millions to lose healthcare. As the Republicans currently control Congress and the Presidency, they are the primary architects of the bill.
Medicaid is a federal-state program providing health coverage to over 72 million Americans, including 7.2 million seniors and 11 million individuals aged 50-64. Medicaid pays for approximately 62% of long-term care residents in nursing homes, making it a crucial lifeline for millions of seniors and older Americans on fixed incomes.
The proposed cuts to Medicaid will compel states to make difficult decisions about what parts of their Medicaid program they can fund with reduced federal funding. Critics contend the changes would most likely affect home and community-based services and impose strict work requirements, potentially causing a loss of healthcare coverage.
The Impact of Medicaid Cuts
The Congressional Budget Office estimates that 11 million people, including over 4 million family caregivers, may lose health coverage due to these proposed changes. The bill introduces nationwide work requirements for individuals capable of working, with some exemptions for seniors, disabled people, caregivers, and pregnant women. However, states will have the discretion to implement the requirements, possibly necessitating monthly or semiannual reporting from Medicaid recipients.
The bill passed by the House of Representatives is now with the Senate where it faces opposition from several Senate Republicans. TSCL opposes these Medicaid cuts and encourages calls to Senators to voice opposition to the bill.
President’s Efforts to Lower Prescription Drug Prices
President Trump recently signed an executive order aimed at lowering prescription drug prices by tying U.S. costs to the lowest prices paid in other developed nations. The order, which gives a 30-day window for pharmaceutical companies to voluntarily lower prices, could potentially provide relief to middle-class families facing high medication costs. However, it also risks disruptions in patient access to medications and may face legal challenges.
Proposed Budget Cuts to the National Institute on Aging
The Department of Health and Human Services (HHS) released a summary of President Trump’s budget request for the 2026 fiscal year. The proposal seeks to slash the National Institutes of Health’s (NIH) discretionary budget to $27.5 billion, a nearly 40% reduction. The National Institute on Aging’s budget would be reduced by approximately 61% if the budget is enacted.
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