Federal Funding Update – House Passes Reconciliation Bill

On May 22nd, the House of Representatives passed the Reconciliation Bill in the early morning hours before heading home for their in-district recess. The bill will now head to the Senate in early June for further negotiations and edits. The Senate has given themselves a deadline of August 4th to vote on this bill.

The Congressional Budget Office has estimated that the Medicaid cuts in this bill will reduce federal Medicaid spending by about $790 billion, with the “prove you’re working/exempt” requirements reducing the federal Medicaid spending the most (estimated at about $279 billion). In addition to Medicaid cuts, it is estimated that there will be about $269 billion in cuts to SNAP (Foodshare).

Some of the Medicaid changes in this bill include:

-Requiring more verification of personal information to prove Medicaid eligibility

-Decreasing retroactive coverage from 3 months to 1 month

-Limiting how states can spend money on Medicaid

-Increased administrative work/costs for states

-Changes that can financially penalize states for mistakes

It is estimated that for the state of Wisconsin, there will be a 9% reduction in Medicaid spending per person and a $400 million per year cut to federal Medicaid spending. It is also estimated that 4-6% of people on Medicaid in Wisconsin will lose coverage (roughly 66,000 – 83,000 individuals).

These cuts are simply choices that do not solve problems or improve Medicaid in any way. These cuts will result in people losing their Medicaid coverage and food assistance. However, it is important to note that no cuts have happened yet. Advocates can still use their voices to influence the US Senate to make different choices.

This is the time to keep sharing your story with lawmakers. Send emails, make phone calls, or schedule meetings with lawmakers and let them know what Medicaid means to you and what these cuts could mean for you and your family. Even if you get no response, it is important that lawmakers know their constituents are watching this issue closely.

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