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By Aliss Higham
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House Speaker Mike Johnson has said Republicans will not pursue federal funding cuts for Medicaid that experts have warned could see millions lose their health insurance coverage.
Newsweek has contacted Johnson's office for comment via email.
Why It Matters
As of October, more than 72 million people across the country had health coverage through Medicaid, including children, the elderly and people with disabilities—although coverage varies by state, both in terms of benefits and eligibility criteria.
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A budget reconciliation bill passed by the House of Representatives in April does not directly mention cuts to Medicaid, but it instructs the House Committee on Energy and Commerce, which has jurisdiction over the program, to slash the Department of Health and Human Services' budget by $880 billion over 10 years—sparking concerns about cuts to the nation's largest health insurance program.
What To Know
A report by Politico said Johnson has confirmed that the GOP will not pursue changes to the enhanced federal medical assistance percentage (FMAP), which determines the federal share of Medicaid funding.
FMAPs vary by state, ranging from 50 percent to more than 75 percent, with poorer states receiving more funding. Under the Affordable Care Act, states that have opted in to the Medicaid expansion receive a permanent 90 percent FMAP for the expansion population.
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FMAP significantly affects state budgets, with higher rates easing financial pressure and helping states provide broader Medicaid coverage. If Congress were to reduce the enhanced FMAP, states may find it financially unsustainable to continue their Medicaid expansion and drop out, potentially leading to millions losing coverage. Twelve states have trigger laws in place that would automatically end expansion or require changes if the federal match rate drops.
Analysis by the Urban Institute found that number of uninsured people would rise by 10.8 million if all states with trigger laws abandon the expansion in the face of funding cuts.
Johnson also said it is unlikely that lawmakers will push for per capita funding caps on Medicaid funds sent to states.
"I think we're ruling that out as well, but stay tuned," the speaker said.
A per capita funding model for Medicaid means that the federal government would give each state a fixed amount of money for each person enrolled in the program, rather than paying a percentage of the total cost of care.
What People Are Saying
Several Republican lawmakers have signaled they will not support a bill that shifts funding responsibilities or introduces a per capita spending model.
New York Representative Mike Lawler has said he is opposed to both. "I don't support any change to FMAP," the Republican said. "I don't support per capita caps."
Others are still weighing up the options. "Well—I haven't ruled it out," Texas Representative Chip Roy said on X, formerly Twitter. "It's necessary to stop robbing from the vulnerable to fund the able-bodied."
What Happens Next
A markup for the bill is targeted for the week beginning May 12.
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