Senate Republicans Omit Medicare Advantage Cuts, Increase Medicaid Reductions

Senate Republicans are proposing more aggressive Medicaid cuts for low-income and disabled individuals than those passed by the House to fund President Trump's tax package, while notably abandoning efforts to reduce costs in Medicare, benefiting major Medicare Advantage insurers like Humana and UnitedHealth. The Senate bill aims to tighten Medicaid eligibility and restrict states' use of healthcare provider taxes to increase federal funding, causing concern among some Republican senators worried about the impact on their constituents. Although some GOP senators have called for deeper deficit reductions, including more spending on border security and defense, the Senate can only afford to lose a few votes to pass the party-line bill. Meanwhile, Republican senators are also considering reforms to address "upcoding" in Medicare Advantage, a practice that inflates payments by exaggerating patient conditions, as a means to reduce federal spending and help offset tax cut costs. These ongoing discussions reflect the Senate GOP's attempt to balance tax cut funding with health program savings without cutting Medicare Advantage benefits. The legislative process remains fluid, with no final proposals announced on Medicare Advantage reforms yet.