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House Republicans are exploring cuts to federal health spending to fund a budget bill that could allocate up to $200 billion for the Iran war and immigration enforcement. This move is likely to spark controversy, especially as it might portray the party as prioritizing military spending over healthcare in an election year. Key figures like House Budget Chair Jodey Arrington and House Majority Leader Steve Scalise are involved in these discussions, focusing on reducing fraud and waste in federal health programs, similar to last year's budget law that slashed Medicaid spending and introduced work requirements.
One proposal under consideration would reduce subsidies for Affordable Care Act (ACA) payments, potentially increasing costs for enrollees while saving over $30 billion. The Congressional Budget Office previously estimated this could lower ACA premiums by 11% but would leave an additional 300,000 people uninsured. While the conversations are in the early stages, moderate Republicans may resist cuts that could be seen as detrimental to their constituents, complicating efforts to secure enough votes for any proposed changes.
President Trump is also advocating for a "most favored nation" policy to align U.S. drug prices with lower international rates. Although this could be included in a new reconciliation bill, GOP leaders have shown reluctance to adopt it. Arrington expressed a desire to pass health-related measures quickly, within 60 to 90 days, but acknowledged hesitance around revisiting Medicaid policies, particularly those affecting undocumented immigrants. Democrats are already criticizing these proposals, framing them as harmful to American healthcare in order to fund military actions.
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