Possible Government Shutdown Over Democrats and Republicans’ Healthcare Dispute

TL/DR –

The potential shutdown of the US federal government is largely due to disagreements between Democrats and Republicans over healthcare spending. The Democrats refuse to vote for legislation to keep the government open unless President Trump and the Republican-majority Congress reverse cuts to Medicaid and extend subsidies for Affordable Care Act plans. Trump’s legislation, approved in June, is estimated to reduce federal Medicaid spending by $793bn and increase the number of uninsured people by 7.8 million.

Federal Shutdown Looms Over Healthcare Spending Dispute

The Democrats and Republicans are at odds over healthcare spending, potentially leading to a federal government shutdown. Democrats refuse to vote for legislation to keep the government open unless Donald Trump and the Republican-majority Congress reverse Medicaid cuts and extend Affordable Care Act subsidies.

In June, Trump approved a bill reducing federal Medicaid spending by $793bn, projected to leave 7.8 million people uninsured. The majority of savings come from new work requirements for Medicaid beneficiaries.

The law also ends premium tax credits for Health Insurance Marketplace plans after 2025, making coverage more expensive and potentially leaving 3.1 million more uninsured, according to CBO estimates.

Democrats, including representative Jeffries and Senate minority leader Chuck Schumer, expressed concerns about the impact of healthcare spending cuts on rural hospitals and individuals.

Amid negotiations, Trump threatened to implement irreversible actions during the shutdown detrimental to Democrats. However, specific cuts, including Medicaid or the Affordable Care Act, weren’t explicitly mentioned.

The Senate majority leader, John Thune, suggested a potential compromise by proposing to delay the shutdown until 21 November and address the “ACA credit issue” before year-end.

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