Under GOP Tax Plan, Health Sector Would Take $1 Trillion Hit, CBO Says

Modern Healthcare: GOP Tax Plan Would Cost Healthcare $1T: CBO
A new analysis of the One Big Beautiful Bill Act of 2025 concludes the economic benefits of its tax breaks would be outweighed by its costs over time and confirms the healthcare sector faces a hefty $1 trillion loss. Although cuts to Medicaid, the health insurance exchanges and other programs, and some economic growth would partially offset its $3.7 trillion price tag, the bill would increase the federal budget deficit by $2.8 trillion over 10 years, according to a report the nonpartisan Congressional Budget Office and Joint Committee on Taxation issued Tuesday. (McAuliff, 6/17)

Politico: Hospitals Stunned By Senate GOP’s Medicaid Plan
One of the most powerful lobbies in Washington is redoubling its efforts to avoid a cut to Medicaid payments in the GOP’s megabill. Hospital executives weren’t happy last month when the House included a provision in its version of the bill freezing a loophole states have used to boost payments to hospitals serving the low-income patients enrolled in Medicaid. Hospitals have long enjoyed deference from lawmakers — since they both care for and employ their constituents. (King, Oprysko, Carney and Chu, 6/17)

NBC News: How The Senate’s Proposed Medicaid Cuts Could Deepen The Rural Hospital Crisis
Rural hospitals across the U.S. — many already hanging by a thread — could take a serious hit if a proposed Medicaid cut in the Senate’s domestic spending bill is signed into law. The provision, outlined in the 549-page bill released by the Senate Finance Committee on Monday, would gradually limit states’ use of Medicaid’s so-called provider tax. Medicaid is jointly funded by the federal government and states. States cover the upfront cost of care and then are reimbursed by the federal government for at least 50%. (Lovelace Jr., 6/17)

Bloomberg: Senate Tax Bill Lacks Votes As Republican Leaders Seek SALT Cap, Medicaid Deals
Republican leaders are aiming for quick negotiations over needed changes to the newly unveiled Senate tax bill which lacks the votes to secure majorities in both chambers as written. The prospect of prolonged talks with holdouts in both the conservative and moderate wings of the party threaten Senate Majority Leader John Thune’s goal of passing President Donald Trump’s tax-cut legislation by July 4. (Wasson, Diaz, and Dennis, 6/17)

Also —

The Hill: Mehmet Oz To Pitch GOP Senators On Need For Medicaid Changes
Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, is scheduled to speak to Republican senators at lunch Tuesday on the need to reform Medicaid, according to a GOP source familiar with the schedule. Oz is expected to speak in detail about the need to protect the program for low-income families, the elderly and the disabled, and what the administration views as current abuses of the program, such as people in the country without authorization receiving Medicaid benefits. (Bolton, 6/17)

Modern Healthcare: Fitch Lowers Insurance Credit Outlook Amid Medicaid Cuts
Medicaid funding cuts outlined in the “One Big Beautiful Bill Act” could lead to financial challenges for the insurance sector, according to a Tuesday report from Fitch Ratings. The credit rating agency lowered its outlook from “neutral” to “deteriorating” after the Senate released its proposed changes to the legislation on Monday, which called for more healthcare funding cuts than the House-passed version. (DeSilva, 6/17)

In related news about health insurance —

The Washington Post: Healthcare.Gov Fraud Fuels GOP Attempt To Cut Affordable Care Act
Millions are fraudulently receiving health insurance subsidized by the federal government, according to a new conservative think tank report to be released Tuesday, as Republicans move to tighten controls on Healthcare.gov and limit enrollment. The Biden administration’s attempts to make it easier for people to sign up for insurance through the federal marketplace website also allowed insurance brokers to commit fraud, experts across the political spectrum agree. Those brokers were able to enroll people, sometimes without their knowledge, for subsidized plans by misstating their incomes, while earning commissions from insurers. (Winfield Cunningham, 6/17)

Axios: Tariffs Drive Some Health Plans To Hike Premiums
Health insurers are starting to notify states that tariffs will drive up the premiums they plan to charge individual and small group market enrollees next year. (Goldman, 6/18)

KFF Health News: Have Job-Based Health Coverage At 65? You May Still Want To Sign Up For Medicare
When Alyne Diamond fell off a horse in August 2023 and broke her back, her employer-based health plan through UnitedHealthcare covered her emergency care in Aspen, Colorado. It also covered related pain management and physical therapy after she returned home to New York City. The bills totaled more than $100,000. The real estate lawyer, now 67, was eligible for Medicare at the time but hadn’t enrolled. Since she was still working, she thought her employer health insurance plan would cover her. (Andrews, 6/18)