Senate GOP Seeks Deeper Medicaid Cuts Amid Deficit, Insurance Loss Concerns

Senate Republicans have unveiled their version of President Trump's tax bill, which includes deeper Medicaid cuts than the House version, aiming to fund substantial tax cuts promised by Trump. The bill proposes new work requirements and a $35 co-pay for some Medicaid recipients, which could cause millions to lose health insurance and disproportionately benefit wealthy households while raising taxes on the poorest. These Medicaid cuts have sparked significant opposition within the GOP, with concerns about the impact on rural hospitals, state funding mechanisms like provider taxes, and the overall ballooning federal deficit. The Nebraska Hospital Association warned that the proposed Medicaid changes could devastate rural hospitals, many of which are already financially fragile and reimbursed for only a fraction of their Medicaid care costs. Additionally, there is internal GOP conflict over the state and local tax (SALT) deduction, a critical provision for the bill's passage that faces resistance in the Senate. Senators have a tight deadline to reconcile these issues and secure enough votes to pass the bill before the July 4 holiday.