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How Trump’s tax cuts could have devastating impacts on health care

by Morgan Stephens
January 23, 2025
in Politics
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To pay for Donald Trump’s tax cuts for the wealthiest People and massive firms, the GOP has outlined a sweeping $5 trillion in cuts from Medicare, Medicaid, and the Inexpensive Care Act. 

These government-funded well being care packages assist 70 million aged, poor, and disabled People. If the plan goes ahead—which it’s prone to within the GOP-led Home and Senate—it may have devastating impacts on U.S. well being care. 

Of their 50-page memo, Republicans define how they’d use a ten p.c tariff on all imports to save lots of the federal government cash—at the price of American customers.

If carried out, the GOP’s plan would strip undocumented immigrants’ eligibility for well being care, lower Inexpensive Care Act enlargement, implement necessities for Medicare that consultants say would take away 600,000 recipients, and create “web site neutrality” that will power medical doctors to carry out procedures of their workplaces as an alternative of outpatient hospital settings. 

Website neutrality is the concept sufferers ought to pay the identical value for a similar service, no matter the place it is carried out. The purpose is to scale back well being care prices and promote the viability of impartial practices—on the expense of probably making a affected person much less secure on account of not being in a hospital setting after they obtain intensive care. 

Trump not too long ago signed an government order repealing President Joe Biden’s prescription value caps for individuals on Medicare and Medicaid, calling them “deeply unpopular” and “radical.” He additionally issued a directive Tuesday to prohibit any public communication from the Division of Well being and Human Companies till it’s reviewed and accepted by a presidential appointee.

The Republican plan would cut back the federal authorities’s Medicare value burden, leaving states to choose up the slack. 

Well being care has lengthy been a goal for Republicans, primarily as a result of it’s one of many largest gadgets within the federal funds, accounting for almost 1 / 4 of all federal spending—an estimated $1.7 trillion in 2024 alone. Reducing these packages is a part of a broader technique to scale back federal spending, however it’s additionally one that would disproportionately hurt essentially the most weak People.

In response to the anticipated slashes, Democrats like Sen. Elizabeth Warren of Massachusetts voiced their opposition in a letter to HHS nominee Robert F. Kennedy Jr. earlier this month.

“I’m involved about Republican proposals to chop Medicaid so as to pay for proposed tax cuts to ultra-wealthy people and huge firms,” Warren wrote. 

“The Home Republican Contract Towards America will finish Medicaid as we all know it, destroy the Inexpensive Care Act, and get rid of the mortgage curiosity deduction, which can elevate prices on tens of thousands and thousands of working-class and middle-class People,” Home Minority Chief Hakeem Jeffries mentioned in a press convention Thursday, including that Democrats vow to push again on the agenda “with each fiber in our physique.” 

The GOP’s proposed cuts would upend the lives of thousands and thousands of individuals, all for the advantage of the wealthiest People and firms. Will that cease them, although? Unlikely. 

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Tags: CarecutsdevastatingHealthImpactsTaxTrumps
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