House Republicans have recently backtracked on two major proposals to cut Medicaid funding in their budget reconciliation efforts.
Here’s what ASC leaders need to know:
1. Speaker Mike Johnson announced May 6 that proposals to reduce the Federal Medical Assistance Percentage for Medicaid expansion states and to implement per capita caps on Medicaid funding have been removed from the reconciliation package.
2. Despite removing those specific cuts, Republican lawmakers are still pursuing up to $880 billion in federal healthcare savings — with Medicaid funding expected to bear much of the burden.
3. One cost-cutting measure still under discussion is the introduction of work requirements for healthy adults in states receiving the enhanced 90% federal Medicaid match.
4. The reconciliation plan is part of a broader budget resolution passed in April by a narrow House vote (216-214). House leaders aim to finalize the package by Memorial Day, though the House Energy and Commerce Committee has delayed its vote on healthcare cuts until next week.
5. According to a May 6 report from the Urban Institute and the Robert Wood Johnson Foundation, 10 states and Washington, D.C., could see a combined $468 billion shortfall over the next decade if FMAP guarantees are reduced.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.