Policy ICU

Rep. Don Bacon (R-NE) has been voicing his displeasure with the budget reconciliation process. He is wary of a Medicaid cut more than $500m and is willing to break with Pres. Trump even though he is in a competitive district.

Hearing that several Republican reps are getting cold feet on the proposed Medicaid cuts – especially those in competitive districts.

From a longtime HHS contractor – “There is no shortage of duplication (in HHS) and streamlining is good, but this is extreme. I don’t know how things will get done with so fewer people.”

1. Fear of loss of federal funding (not new), in general and tied to any DEI language;
2. Tariffs raising the cost of devices, supplies, medicines, etc.;
3. Cuts in medicaid that would be devastating (not new);
4. Recession and tariffs driving unemployment, causing even more people to go onto medicaid or without coverage;
5. Recession making it harder for people to cover high deductibles, leading to more bad debt;
6. Drop in philanthropy due to recession (philanthropy for many systems is a huge source of revenue); and
7. Stock market tanking hurting their investment income.