Don Bacon Establishes $500B Limit on Medicaid Funding

The Nebraska Republican plays a significant role in the negotiations surrounding the GOP megabill.

Don Bacon Establishes $500B Limit on Medicaid Funding
Rep. Don Bacon, a prominent moderate within the GOP, is firmly opposed to cuts to Medicaid. The Nebraska Republican has reportedly informed the White House that he will not agree to reductions exceeding $500 billion for the program, as confirmed by two sources with knowledge of the situation. This stance could hinder the Republican party's efforts to move forward with a domestic policy bill that is expected to feature an extension of former President Donald Trump’s 2017 tax cuts.

Bacon has indicated his desire to limit changes to Medicaid primarily to implementing the first-ever federal work requirements, excluding noncitizens from eligibility for benefits, and instituting more frequent eligibility checks.

In a brief interview on Tuesday, Bacon acknowledged the $500 billion cap and outlined his objectives.

His position highlights the broader challenges Republicans are encountering as they attempt to push through a substantial party-line megabill that would also encompass border security, energy policy, and various other measures. While moderates express caution regarding changes that could severely impact safety-net programs, conservative hard-liners push for significant cuts—all against the backdrop of slim margins in both the House and Senate.

Bacon's vote is critical, and other lawmakers have voiced similar concerns about potential Medicaid cuts. If all currently sworn members are present and vote, Speaker Mike Johnson can afford to lose no more than three Republicans on a party-line vote. Earlier this month, two GOP members, Thomas Massie of Kentucky and Victoria Spartz of Indiana, opposed a budget blueprint for this bill.

House Energy and Commerce Chair Brett Guthrie has noted that health care provisions might represent as much as $600 billion of the committee’s $880 billion savings target, although not all of this would necessarily be derived from Medicaid.

On Monday evening, the committee convened to privately discuss the possibility of capping federal payments for certain beneficiaries in states that have expanded Medicaid under the Affordable Care Act. The 2010 law allows individuals with incomes just above the federal poverty line to access the program. Proposals to roll back this expansion are seen as more contentious among Republicans than others, such as work requirements, due to the potential for significantly increased coverage losses.

Frederick R Cook for TROIB News

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