Health-care cuts in GOP's budget bill may add up to $22,800 in medical debt for some families: Report
Proposed federal spending cuts to health care in Republicans' "One Big Beautiful Bill Act" may increase some families' medical debts by as much as $22,800, according to a new report from Third Way, a Washington, D.C.-based think tank.
The Republican budget bill proposes $1.1 trillion in cuts to health care that target both Medicaid and Affordable Care Act coverage. An estimated 16 million people may lose health coverage based on those proposals, the Congressional Budget Office has estimated — 7.8 million who would lose Medicaid and 8.2 million who would lose Affordable Care Act coverage.
Overall, medical debt would increase by $50 billion as a result of the budget bill changes — a 15% rise over today's $340 billion in unpaid debts, according to Third Way.
Health coverage losses would increase the number of people in families with medical debt by 5.4 million, according to Third Way's report. More than 100 million people currently have medical debt in the U.S., according to KFF.
More from Personal Finance:'SALT' deduction in limbo as Senate Republicans unveil tax planHow Senate GOP 'no tax on tips' proposal differs from House planSenate tax bill includes $1,000 baby bonus in 'Trump accounts'
An estimated 2.2 million households would have medical debt because of Medicaid coverage losses, while 3.2 million more people would rack up balances due to Affordable Care Act reforms that may prompt coverage losses or higher premiums, according to Third Way.
Without coverage, families may see their medical debts increase by as much as $22,800, according to Third Way's report. About 87% of households that previously had no medical debt would accumulate an average of $22,800 in balances. Meanwhile, 13% of households may accumulate an additional average of $8,790 in medical debt on top of $13,490 in existing balances.
"That's going to put people's dreams back, if they're hoping to go to college or hoping to have a solid retirement or hoping to buy another house," said David Kendall, senior fellow for health and fiscal policy at Third Way. "Medical debt stands in the way of the American dream, and we shouldn't make it worse."
The White House said proposed federal spending cuts are aimed at eliminating "waste, fraud and abuse" in government programs including Medicaid. The Trump administration has said the "big beautiful" bill is a potential "economic windfall for working and middle-class Americans" through tax cuts, higher wages and higher take-home pay.
In a Monday letter that cites the Third Way report, Sen. Jeff Merkley, D-Ore., ranking member of the Senate Budget Committee, and Democratic Sens. Cory Booker of New Jersey, Chuck Schumer of New York and Ron Wyden of Oregon, urged Republican leaders to reconsider the proposed health-care cuts.
Addressing medical debt is a "national priority" with "bipartisan support," the senators wrote in a letter to Senate Majority Leader John Thune, R-S.D., and House Speaker Mike Johnson, R-La. Currently, 16 states have moved to either cancel medical debt or eliminate medical debts from credit reports, they wrote.
"Medical debt is a complex problem, but having health insurance coverage makes a measurable difference," the senators wrote.
They pointed to a 2013 study in The New England Journal of Medicine that found Medicaid coverage reduces medical debt rates by 13.28 percentage points. The study, published ahead of state Medicaid expansion under the ACA, looked at the effects of Oregon's 2008 Medicaid expansion.
Americans with unpaid medical balances may face "dire" consequences, which may include delaying or going without needed care, cutting back on food or other necessities or taking on additional debt, the lawmakers wrote.
In addition to personal setbacks, medical debt also affects consumer spending, which may prevent economic growth, they said.
"If the Republican reconciliation bill passes these drastic health care cuts into law, working class families across America risk going further into medical debt," the senators wrote.
"It is not too late to stop these cuts," they wrote.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Pre-Markets Look Toward Sunny Climes
Monday, June 23, 2025Pre-market futures are mostly flat to start a new trading week, with only the small-cap Russell 2000 still trading down more than -0.1%. We're already off pre-market lows, as market participants look forward toward the passage of the budget reconciliation bill (aka the 'Big Beautiful Bill') through the Senate by mid-week. Bond yields also remain muted at this hour, with the 10-year at 4.34% and the 2-year 3.89%.Oil prices are up slightly this morning, following a round of U.S. air strikes on Iran over the weekend. Considering the vast implications of such an undertaking, oil markets are taking this news pretty much in stride this morning. That said, we are at five-month highs currently, but WTI and Brent crude remain trading in the mid-$70s per barrel. The June print on S&P flash PMI for Services and Manufacturing is expected after the regular trading day gets underway. Both are expected to tick down half a point or so month over month, yet remain over the key 50-level, which indicates growth versus loss. While Services has been ping-ponging back and forth so far each month in 2025, Manufacturing looks to revert to where we were in the early part of the Existing Home Sales for May will be hitting the tape at 10am ET today. This is also expected to come down a bit month over month, which would represent the third-straight month lower and the first sub-4 million seasonally adjusted, annualized units since October of last year. Higher-than-expected mortgage rates here in mid-2025 continue to control much of the narrative here. We will see a healthy range of new housing data this week, beyond today's Existing Home Sales: New and Pending Home Sales for May will be out Wednesday and Thursday, respectively, and the Case-Shiller Home Price Index for April will give us the most accurate look at nationwide pricing data ahead of the opening bell addition, Consumer Confidence, Retail & Wholesale Inventories, Advanced Trade Balance, Durable Goods Orders and the second revision on Q1 GDP will also find their way into our collective economic outlook. This is all before the all-important Personal Consumption Expenditures (PCE) report for May, which is cited in multiple other economic prints. By the end of this week, we should have a much tighter grasp on how our domestic economy is or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
18 minutes ago
- Yahoo
The dollar sees a rebound after US strikes Iran, but can it continue?
The dollar rose on Monday as uncertainty over the Israel Iran conflict persisted following US strikes on Iranian nuclear facilities over the weekend. By around 2.45 CEST, the Dollar Index had risen 0.61% in daily trading to 99.31. Over the month, it showed a 0.19% increase, although its year-to-date value was still down almost 9%, failing to win back losses linked to erratic policies from the Trump administration. US President Donald Trump said that the weekend strikes had caused 'monumental damage', although some Iranian officials downplayed the impact. The full extent of the damage could not immediately be determined by the UN's nuclear watchdog. Israel — meanwhile — continued with its strikes on Iran on Monday, while Tehran vowed that it would 'never surrender to bullying and oppression'. Several nations warned Iran against a retaliatory closure of the Strait of Hormuz, a shipping lane responsible for around 20% of global oil and gas flows. 'In this morning's trading session, the dollar staged an expected rebound. The demonstration of US military strength, as well as the fear of higher oil prices, weakened the euro,' said ING economists in a note. Higher oil prices would likely drive up inflation and discourage the US Federal Reserve from cutting rates in the near future. This would spell bad news for US consumers but would simultaneously increase the dollar's attractiveness to investors. 'Looking ahead, one of the key questions is whether US involvement in the conflict could restore the dollar's safe-haven appeal. Here, a crucial factor will be the duration of any potential Strait of Hormuz blockade. The longer such a blockade lasts, the higher the likelihood that the value of safe-haven alternatives like the euro and yen is eroded, and the dollar can enjoy a decent recovery,' said ING economists. Related Is Trump destroying the dollar - and what does it mean for the euro? Energy in Europe is also at stake as Israel-Iran conflict escalates The greenback's value has dropped significantly this year as policies from the Trump administration have spooked investors, damaging the currency's status as a safe-haven asset. Signals worrying investors are not solely linked to trade policy, but also include a high US deficit, the cost-slashing bureau DOGE, sudden cuts to foreign aid, withdrawals from international treaties, and the prospect of financial deregulation. Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews that 'structural issues around a twin deficit and the Trump administration's volatile handling of tariffs should continue to weigh on an overvalued US dollar'. Even so, he noted that the 'short term potential for higher oil prices will likely affect the Chinese and European economies to a greater extent, as they are more dependent on oil imports than the US'. Ryan Sweet, chief US economist at Oxford Economics, reiterated this point, noting that 'the US economy is essentially energy independent but others are not, including Japan as it imports most of its oil from the Middle East'. Sweet told Euronews that dollar gains are positive but still muted as 'currency markets are in a wait and see mode'. There is also significant uncertainty around President Trump's tariff deadline, with a 90-day pause on so-called 'reciprocal' duties set to expire on 9 July.
Yahoo
18 minutes ago
- Yahoo
Pre-Markets Flat to Start a Fresh Trading Week
Pre-market futures are mostly flat to start a new trading week, with only the small-cap Russell 2000 still trading down more than -0.1%. We're already off pre-market lows, as market participants look forward toward the passage of the budget reconciliation bill (aka the 'Big Beautiful Bill') through the Senate by mid-week. Bond yields also remain muted at this hour, with the 10-year at 4.34% and the 2-year 3.89%.Oil prices are up slightly this morning, following a round of U.S. air strikes on Iran over the weekend. Considering the vast implications of such an undertaking, oil markets are taking this news pretty much in stride this morning. That said, we are at five-month highs currently, but WTI and Brent crude remain trading in the mid-$70s per barrel. The June print on S&P flash PMI for Services and Manufacturing is expected after the regular trading day gets underway. Both are expected to tick down half a point or so month over month, yet remain over the key 50-level, which indicates growth versus loss. While Services has been ping-ponging back and forth so far each month in 2025, Manufacturing looks to revert to where we were in the early part of the year. Also, Existing Home Sales for May will be hitting the tape at 10am ET today. This is also expected to come down a bit month over month, which would represent the third-straight month lower and the first sub-4 million seasonally adjusted, annualized units since October of last year. Higher-than-expected mortgage rates here in mid-2025 continue to control much of the narrative here. We will see a healthy range of new housing data this week, beyond today's Existing Home Sales: New and Pending Home Sales for May will be out Wednesday and Thursday, respectively, and the Case-Shiller Home Price Index for April will give us the most accurate look at nationwide pricing data ahead of the opening bell tomorrow. In addition, Consumer Confidence, Retail & Wholesale Inventories, Advanced Trade Balance, Durable Goods Orders and the second revision on Q1 GDP will also find their way into our collective economic outlook. This is all before the all-important Personal Consumption Expenditures (PCE) report for May, which is cited in multiple other economic prints. By the end of this week, we should have a much tighter grasp on how our domestic economy is performing. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research
