{"id":8933,"date":"2026-08-12T06:08:07","date_gmt":"2026-08-12T06:08:07","guid":{"rendered":"https:\/\/movinginsiderusa.com\/?p=8933"},"modified":"2026-08-12T06:08:07","modified_gmt":"2026-08-12T06:08:07","slug":"trump-officials-tout-medicaid-financing-changes-ahead-of-midterms","status":"publish","type":"post","link":"https:\/\/movinginsiderusa.com\/?p=8933","title":{"rendered":"Trump officials tout Medicaid financing changes ahead of midterms"},"content":{"rendered":"

An administration report projects that limiting provider taxes and state-directed payments could tamp down cost growth of health care. Democrats have pledged to reverse the GOP\u2019s Medicaid changes.<\/strong><\/p>

Read more Pentagon report reveals steep civilian toll of Trump\u2019s Yemen campaign<\/a><\/p>\n

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President Donald Trump is surrounded by lawmakers during the signing of last year’s Republican budget bill. (Tom Brenner\/For The Washington Post)<\/figcaption>\n<\/figure>\n

Republican-sponsored changes in Medicaid will lower hospital prices and Americans\u2019 health insurance premiums, the White House contends in a new report aimed at an issue that could be central to this year\u2019s midterm elections.<\/p>\n

The report<\/a>, which has not yet been released, was authored by senior officials in the Department of Health and Human Services and shared with The Washington Post. It <\/b>examines the potential impact of two significant changes in how Medicaid is financed that were included in last year\u2019s Republican budget bill<\/a>. The changes could affect tens of billions of dollars in annual federal spending.<\/p>\n

Last year\u2019s legislation, the One Big Beautiful Bill, put new restrictions on two financing mechanisms used by states \u2014 known as provider taxes and state-directed payments \u2014 to help pay for their safety-net health care programs. Administration officials and GOP lawmakers say the bill closed loopholes that allowed states and health care providers to draw down additional federal funds with too few guardrails, inflate their spending and wrongly pass costs along to consumers.<\/p>\n

The administration\u2019s report projects that the restrictions could reduce government health care spending by as much as 5 percent and help tamp down cost growth, including for people who have private health insurance.<\/p>\n

The Republican budget bill, which passed using a process known as reconciliation, cut about $1 trillion from Medicaid and other health care programs. Health care advocates and Democrats have said that the Medicaid financing structures the bill curtailed provide critical funding<\/a> for states and health care providers. They warn that Trump\u2019s new limits could lead to declining Medicaid enrollment, closure of rural hospitals and other adverse effects.<\/p>\n

\u201cI don\u2019t think that there\u2019s any merit to the cuts that they have been making,\u201d said Jessica Schubel, who served as a senior health official in the Biden White House. \u201cThis idea that provider taxes or state-directed payments are somehow skirting the objectives of Medicaid and are being used improperly, in my opinion, is false.\u201d<\/p>\n

Trump\u2019s cuts to Medicaid have also become a major issue in Democrats\u2019 congressional campaigns. Protect Our Care, a left-leaning advocacy group, last month launched a new national health care campaign dubbed \u201cSick Of It!<\/a>,\u201d which calls for electing Democrats who will reverse the GOP\u2019s Medicaid changes.<\/p>\n

Some Democrats, however, said that provider taxes and state-directed payments, while well-intentioned, have become problematic and contributed to health care cost inflation.<\/p>

Read more Trump administration to end Medicaid funding for children\u2019s transgender care<\/a><\/p>\n

\u201cIt has been a disaster for the federal budget, and it\u2019s been a disaster in terms of a misdirection of Medicaid dollars to hospitals,\u201d said Ann Kempski, a longtime health care consultant and Democrat. \u201cThese had to be reined in.\u201d<\/p>\n

White House officials, too, have characterized their new limits on Medicaid financing as a necessary reform.<\/p>\n

Health care advocates and Democrats are \u201ccoming from a perspective of every dollar spent on Medicaid is a good thing,\u201d said a White House official. \u201cWe want to make sure that the resources are being targeted in a way that they\u2019re actually reaching what they\u2019re supposed to be doing, which is providing better care for beneficiaries.\u201d<\/p>\n

Forty-nine states and the District of Columbia <\/b>have provider taxes, which they levy on health care providers. Medicaid is financed jointly by states and the federal government, and the provider taxes trigger a flow of additional federal funds, with the money going back to providers and also being used for unrelated state priorities.<\/p>\n

State-directed payments have been used to direct additional funds to health care providers through Medicaid-managed care programs.<\/p>\n

The new limits on provider taxes and state-directed payments were overshadowed last year by some other Medicaid changes in the GOP bill, such as efforts to impose new work requirements on people who get Medicaid coverage.<\/p>\n

\u201cI think the most impactful change of all the Medicaid and ACA changes in the reconciliation bill was the limits on SDPs,\u201d said Brian Blase, a conservative health policy expert who served in the first Trump administration. Blase\u2019s think tank, the Paragon Health Institute, last year urged congressional Republicans<\/a> to impose new limits on provider taxes and SDPs.<\/p>\n

The administration\u2019s report on its Medicaid changes relies on projections of their impact and does not draw on empirical evidence. It is authored by senior Health and Human Services officials, including Casey Mulligan, the agency\u2019s chief economist, and Ge Bai, who President Donald Trump has nominated to serve as the agency\u2019s assistant secretary for planning and evaluation.<\/p>

Read more President Trump appears, and briefly stars, at his Patriot Games<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Republican-sponsored changes in Medicaid will lower hospital prices and Americans\u2019 health insurance premiums, the White House contends in a new report.<\/p>\n","protected":false},"author":1,"featured_media":8931,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nTrump officials tout Medicaid financing changes ahead of midterms - Moving Insider USA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movinginsiderusa.com\/?p=8933\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump officials tout Medicaid financing changes ahead of midterms - 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