Medicaid Changes Get New Timeline: Who's Impacted

Newsweek

20-05-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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House Republicans are moving toward instituting work requirements for Medicaid recipients starting in early 2027.
This is a significant shift from prior proposals, as they rally around President Donald Trump's expansive budget package known as the "One Big Beautiful Bill."
The legislation seeks to enact sweeping tax cuts, increase border funding, and reshape social safety net programs.
Republican House Majority Leader Steve Scalise of Louisiana confirmed Monday that the GOP leadership will propose an earlier start date as part of their negotiations to advance the bill through Congress.
"We're coming to a much earlier date, early 2027, that we're going to put in the bill in the Rules Committee this week," Scalise said in an interview on CNBC's Squawk Box, referring to the work requirements for Medicaid beneficiaries.
Originally proposed for 2029, the new requirements have become a flashpoint in internal GOP negotiations, with conservative lawmakers demanding faster implementation.
The change, Scalise said, is designed to give Centers for Medicare & Medicaid Services Administrator Mehmet Oz sufficient time to manage the transition while addressing concerns that the previous timeline was too slow.
House Majority Leader Steve Scalise (R-LA) speaks during a news conference following a House Republican conference meeting at the U.S. Capitol on May 6, 2025 in Washington, DC.
House Majority Leader Steve Scalise (R-LA) speaks during a news conference following a House Republican conference meeting at the U.S. Capitol on May 6, 2025 in Washington, DC.Why It Matters
The change marks a strategic shift in the GOP's approach to social program reforms and reflects Trump's tightening grip on party policy ahead of the 2026 midterms.
The bill aims to solidify key components of Trump's agenda, including permanent tax breaks, new tax exemptions, and significant cuts to Medicaid and food assistance programs.
The Congressional Budget Office has projected that the proposed Medicaid changes would result in 7.6 million fewer people having health insurance.
Meanwhile, the Committee for a Responsible Federal Budget estimates that the entire legislative package could add approximately $3.3 trillion to the national debt over the next decade.
While proponents argue that work requirements will encourage employment and reduce dependency, critics warn that the plan could result in coverage loss for vulnerable populations.
What To Know
Scalise's announcement came as GOP lawmakers prepared for a crucial vote in the House Rules Committee.
The budget bill, over 1,100 pages long, includes wide-ranging provisions: tax cuts originally passed during Trump's first term would be made permanent, the standard deduction would be increased to $32,000 for joint filers, and the child tax credit would rise to $2,500.
The legislation advanced out of the House Budget Committee during a rare late-night session on Sunday, with four Republican deficit hawks voting "present" to avoid derailing the process.
The bill still faces hurdles on the House floor and in the Senate, where moderates are voicing concerns over deep cuts to social programs and regional tax disparities.
It is very likely that the work requirement proposed in the recent adjustments to Medicaid will require that people on Medicaid between the ages of 18 and 64 work or have work-related activities for at least 80 hours per month, and the renewal process is every six months, said Chris Fong, CEO of Smile Insurance and a Medicare specialist.
"The likely impact of this would have on people who are on Medicaid or attempting apply for Medicaid would likely result in a significant decline in enrollment into the Medicaid program," Fong told Newsweek.
What People Are Saying
Chris Fong, CEO of Smile Insurance and a Medicare specialist, told Newsweek: "The staffing required to review every six months is going to push the Medicaid budget to its limits due to the higher staff requirement to review these every six month renewal application applications."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "The CBO is estimating that millions could lose coverage under these requirements, not because they're not working. When my cousin worked in healthcare admin, she'd tell me how most Medicaid recipients already work. They're just in low wage jobs that don't offer insurance. That's what makes this whole debate so frustrating to watch sometimes."
What's Next
The House Rules Committee is expected to finalize the revised bill language later this week.
If it passes the House, the legislation will move to the Senate, where Republicans are also proposing amendments to address concerns from moderate and high-tax state lawmakers.
"As for whether it'll pass...I'm skeptical. The House Republicans might get it through their chamber despite some internal disagreements (some think it doesn't go far enough, others worry about their constituents losing coverage), but it faces a much tougher road in the Senate," Ryan said.
"What I find most telling is that even some Trump allies are privately warning that deep Medicaid cuts could be 'politically suicidal' in swing districts. Healthcare is such a personal issue. People really notice when you mess with their access to doctors and medication."