9 MILLION Could Lose Insurance – GOP Budget Bill Sparks Alarm
The potential loss of health insurance for millions of Americans looms large as a result of the contentious budget bill being debated in Washington.
At a Glance
- 9 million more Americans may lose health insurance if the budget bill isn’t approved.
- Expiration of tax cuts could trigger a recession, increasing unemployment and loss of employer-sponsored insurance.
- Medicaid and ACA enrollments are at risk of significant drop due to economic pressures.
- Efforts are underway by House Speaker Mike Johnson to pass the budget bill with significant tax cuts.
Health Insurance at Risk
The White House’s forecast signals alarm over the potential for 9 million Americans to lose health insurance coverage should President Trump’s budget bill fail. While Democrats projected a loss of 13.7 million, the Congressional Budget Office has corrected this to approximately 8.6 million directly impacted by the bill.
Consequently, 60% of those projected to lose coverage currently depend on employer-sponsored insurance. This is a precarious standing given a forecasted increase in unemployment due to the economic downturn. A White House study suggests that 6.5 million jobs could be lost, deepening the health insurance crisis.
Economic and Legislative Dynamics
The looming expiration of the 2017 tax cuts poses a significant threat to economic stability. Analysts anticipate a “moderate to severe recession” if these tax cuts expire without a suitable fiscal replacement, leading to reduced GDP by 4% and unemployment rates climbing by four percentage points.
“MILLIONS WOULD LOSE HEALTH COVERAGE UNDER G.O.P. BILL. BUT NOT AS MANY AS DEMOCRATS SAY.” – Margot Sanger-Katz.
Within Congress, House Speaker Mike Johnson is striving to steer the passage of the “One Big Beautiful Act,” a budget with ambitious tax cuts and reforms. The massive package of over 1,116 pages aims to make the first-term Trump tax cuts permanent, including significant promises like tax exemptions on overtime and the creation of “MAGA accounts.”
Tax and Spending Adjustments
The House GOP’s budget proposal adjusts key fiscal elements affecting America’s healthcare and taxation landscape. The GOP has adjusted initial savings estimates from healthcare cutbacks, now standing at $625 billion. This indicates a sizable retreat from higher suggested savings plans initially described in the bill.
“The likely impact of federal health-care cutbacks has diminished in recent days as House Republican leaders backed away from some of their bigger-ticket proposals, reducing the estimated savings to $625 billion from previous figures of $715 billion and $880 billion.” – Crain’s New York.
In addition, the GOP bill introduces limitations on health insurance tax credits for non-citizens, potentially siphoning $2.8 billion annually from programs like New York’s Essential Plan. Moreover, Medicaid and ACA subsidized plan enrollment may decrease by 10%, impacting an estimated 500,000 to 1 million individuals who may lose or fail to receive coverage.
