President Trump’s new budget cuts federal healthcare spending by $1 trillion

The news: The newly passed Trump federal budget slashes healthcare spending by more than $1 trillion over the next 10 years.

Digging into the details: The megabill will cause a cascade of US healthcare consequences, especially for Medicaid-insured patients and marketers connected to Medicaid.

  • 12 million US adults on Medicaid are expected to lose their health insurance by 2034, per CBO, largely due to a first-ever federal work requirement forcing adults ages 19-64 who don’t have children to prove they work, volunteer or are enrolled in educational programs.
  • Federal funding for state Medicaid programs will also be cut by about $200 billion and stricter Medicaid eligibility requirements will kick in.
  • More than 300 rural hospitals are facing service reductions or closure, per KFF Health news citing a Cecil G. Sheps Center for Health Services Research report.
  • A 5-year $50 billion rural health fund for state grants beginning in 2026, although it won’t offset the $155 billion decline in rural-area federal Medicaid spending estimated by KFF.

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