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White House Seeks to Avoid Medicaid Cuts as GOP Hard-Liners Insist They're Essential

The future of the Republicans' comprehensive domestic policy bill hangs on a critical issue: Should significant reductions to Medicaid, the federal healthcare initiative serving almost 80 million Americans, be prevented? Alternatively, do these cuts represent the primary objective behind advancing this legislation?

This conflict—between the White House and Republican hardliners in Congress—is unfolding behind closed doors and across Capitol Hill as the party scrambles to draft this massive bill and possibly reduce spending on the social welfare healthcare program by more than $500 billion over the next ten years.

Should Republicans proceed as planned, an estimated 10 million Americans or more might lose their healthcare coverage, according to assessments reviewed by Republican legislators. This prospect has caused concern for President Donald Trump and his key advisors, prompting them to explore alternative options that would enable the GOP to fund a substantial round of tax reductions.

White House officials are "actively" encouraging Republican members of Congress to consider a plan aimed at reducing medication costs under the Medicaid program. This statement was made by a White House official on Thursday, following reports from https://smarthealthradar2025.blogspot.com/ on Wednesday. The administration was seeking such a plan. from Capitol Hill.

"Savings play a significant role, however, the president has expressed openness towards reducing healthcare and medication expenses," stated the official, who wished to remain anonymous while discussing private deliberations.

Reducing drug costs for the federal government might lead to substantial savings, potentially diminishing the necessity to implement the $600 billion in reductions that House Republican leadership is considering for Medicaid.

This could resolve significant political issues for the GOP. Not only is Trump hesitant about triggering wider political repercussions—similar to those experienced when trying to dismantle parts of the Affordable Care Act in 2017—but also, many Republican members of Congress are warning they might oppose the entire comprehensive legislation if the reductions become too severe.

However, there is also a forceful group of far-right legislators demanding substantial reductions—particularly to the 2010 extension of Medicaid as part of the Affordable Care Act. On Thursday, some even hinted at rebellion unless their leadership commits to making those cuts.

Do you prefer to transform it, or would you rather secure it in position, carefully working on the borders? Chip Roy (R- Texas) informed journalists on Thursday. "My aim is to reshape it into something far more effective."

The future of Medicaid was discussed on Thursday during a White House meeting that involved Trump and the Speaker. Mike Johnson And among the various strategies poised to be suggested to Trump was the implementation of "per capita caps" on federal assistance to states under the ACA expansion. This approach might lead to significant budget cuts but could also result in millions losing their health insurance.

The issue was still not settled following the gathering, as per three individuals permitted to speak under conditions of anonymity about the confidential discussions. The leaders of the House Energy andCommerce Committee, responsible for overseeing Medicaid, were at the center of this debate. postponed a scheduled review of the bill , informing members it was to fulfill "a few requests" that emerged from the discussion.

Panel Chair Brett Guthrie (Republican from Kentucky) stated prior to the meeting that they were "completely receptive" to the drug-cost reduction plan. This initiative aims to decrease expenses by aligning what Medicaid reimburses for medications with the reduced rates observed internationally. A representative from the White House clarified that this measure would solely affect medication costs under the Medicaid system.

However, the proposal encounters significant opposition on Capitol Hill, as the pharmaceutical industry has consistently opposed legislative efforts aimed at reducing drug costs. Johnson told https://smarthealthradar2025.blogspot.com/Thursday He wasn’t particularly fond of what’s known as the most-favored-nations policy, which both Republicans and pharmaceutical firms have previously cautioned could severely damage businesses' capability to create new medications.

The pharmaceutical trade organization PhRMA strongly opposed the concept, cautioning that it could lead to an undervaluation of life-saving medications.

“Setting prices by the government in any manner is detrimental to American patients,” stated Senior Vice President Alex Schriver. “Given our increasing rivalry with China, policy makers ought to concentrate on correcting defects within our own system rather than adopting unsuccessful foreign policies.”

During his first term, Trump supported the drug pricing policy, but he faced opposition from Republican legislators who compared it to government-imposed price controls. Senator [Name] had previously advocated for this idea. Bernie Sanders (I-Vt.) and other progressives who viewed it as a forceful approach to control drug costs, until Trump embraced it as his own policy.

After failing to push the policy through legislation, Trump attempted to establish it via regulatory rule-making. However, he could not enforce it following his loss in the 2020 presidential election.

The potential savings from implementing a most-favored-nation drug pricing strategy specifically for Medicaid remains uncertain. This is because the program currently offers substantial discounts on medications relative to the commercial market, which might reduce the overall effectiveness of such a policy.

"Medicaid already secures some of the lowest pharmaceutical costs nationwide," stated Steven Knievel, a drug policy specialist from the non-profit organization Public Citizen.

The staunch conservatives that Johnson needs to get onboard for passing a bill are unsympathetic to the proposal, with several labeling it as "price fixing." Rather, they expect Trump and Johnson to remain resolute in their efforts to cut Medicaid spending. On Thursday, Roy spearheaded this effort. Letter signed by 19 additional House Republican members pushing for "fundamental changes" in Medicaid.

On Wednesday evening, Guthrie had a discussion with the far-right House Freedom Caucus. According to an anonymous participant who provided details about the private meeting, Guthrie outlined several complexities associated with significantly reducing the program. He pointed out that certain states have "trigger laws" which could terminate the expansion should Congress reduce federal financing, thereby exacerbating potential loss of coverage.

"That's not our issue," Representative Eric Burlison (R-Mo.) told him.

Burlison conveyed similar sentiments to journalists on Thursday, stating that states were "manipulating the system" within the present framework, wherein the federal government covers 90 percent of the expenses for individuals benefiting from the expanded coverage under the Affordable Care Act (ACA).

"We shouldn’t allow a single state’s House or Senate to dictate healthcare policies for everyone else across the country," he stated. "This is where I stand, and I am speaking out strongly about this issue.”

David Lim and Mia McCarthy were involved in compiling this report.

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