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  • Washington Highlights

    AAMC Submits Statement Outlining Opposition to Medicaid Cuts in Reconciliation

    Sinead Hunt, Senior Legislative Analyst
    For Media Inquiries

    The AAMC on May 13 submitted a statement for the record (PDF) to the House Energy and Commerce Committee ahead of its markup of reconciliation legislation. The statement outlines the association’s opposition to Medicaid cuts included in the bill’s amended health subtitle (PDF), which was initially unveiled on Sunday evening. The legislation would reduce federal Medicaid spending by $625 billion over ten years through new restrictions on provider taxes and state-directed payments, limits on Medicaid eligibility and enrollment, and targeted cuts to the Federal Medicaid Assistance Percentage for states that choose to use state funds to support Medicaid coverage for undocumented individuals, among other policies. Pursuant to budget resolution adopted by the House of Representatives earlier this year, these savings would be used to offset non-health care priorities, including an extension of the 2017 Tax Cuts and Jobs Act (P.L. 115-97) [refer to Washington Highlights, Feb. 28].  

    During the 26-hour markup on May 13 and 14, Democratic committee members raised concerns about how these proposals — including new work and cost-sharing requirements for Medicaid enrollees — would impact access to coverage and care. Throughout the debate, Democrats introduced numerous amendments, all of which were struck down along party-line votes. Notably, Reps. Marc Veasey (D-Texas) and Kathy Castor (D-Fla.) introduced amendments that would strike provisions of the legislation limiting states’ use of provider taxes and state-directed payments.  

    Ultimately, the committee voted 30-24 along party lines to advance the bill. The House Budget Committee held a May 16 markup, in which it combined the Energy and Commerce Committee legislation with other committees’ reconciliation bills [refer to related story].  However, the legislation was voted down by a vote of 16-21, as five Republicans joined Democrats in opposition. House Republicans are expected to continue negotiations to reach agreement on a final package before the Budget Committee considers the legislation again. The House Rules Committee would then take up the final package before it is considered by the full House.