Senate Reconciliation Bill Would Reduce Federal Medicaid Spending by Over $200 Billion More Than the House Bill

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On July 1, the Senate passed their version of the reconciliation bill, which would cut federal Medicaid spending by over $1 trillion, over $200 billion more than the House-passed reconciliation bill. As the House attempts to pass the Senate version of the bill, several members remain concerned about the size of the Medicaid cuts.

KFF’s analysis shows that all states and the District of Columbia will lose more federal Medicaid funding under the Senate-passed bill than under the House-passed bill. In 14 states, the Senate bill would reduce federal Medicaid spending by at least $5 billion more than the House bill would have: New York, California, Pennsylvania, Texas, Illinois, Virginia, Minnesota, Arizona, New Jersey, Michigan, Louisiana, Ohio, Indiana, and Missouri. Although the Senate bill would provide $50 billion in new rural health funding, that will offset only a small portion of the new cuts, and may not be allocated proportionally to the states with significant reductions in federal spending. In five states (Vermont, New Hampshire, Pennsylvania, Minnesota, and Iowa), the spending cuts would increase by over 50%, which reflects new Senate provisions that would restrict states’ payments to health care providers through managed care plans and limit how states can raise the state share of Medicaid funding through provider taxes.