House committees advance reconciliation text with major impacts on healthcare

Republicans in the House Energy and Commerce and Ways and Means Committees advanced a sweeping tax and policy bill that includes significant healthcare changes, notably $625 billion in Medicaid cuts. The legislation introduces federal work requirements for Medicaid, increases cost-sharing, limits retroactive coverage, and tightens eligibility checks—moves the CBO estimates will cause roughly 8 million people to lose coverage. It also curtails ACA subsidies, with four million expected to become uninsured when enhanced tax credits expire. The bill expands ICHRAs, renames them as CHOICE plans, and boosts HSAs. Pharmacy benefit managers would face new transparency and pricing restrictions. Doctors gain Medicare payment updates, while safety-net hospitals and nursing homes receive temporary financial relief. The bill also bans state-level AI regulation for 10 years and restricts healthcare access for immigrants, transgender youth, and abortion providers. Though likely to change in the Senate, the bill reflects a major GOP effort to reshape healthcare funding and policy.

19-05-2025