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House Republicans Propose Cuts to Medicaid to Finance Savings

Client Alert
May 12, 2025

House Republicans released legislative language yesterday that highlights a key piece of their budget bill – cuts to the Medicaid entitlement program. The nonpartisan Congressional Budget Office (CBO) previously indicated that it would not be possible for House Republicans to achieve President Trump’s desired $880 billion in savings over 10 years without making substantial changes to Medicaid. That prediction came to fruition; the bill proposes Medicaid spending reductions to be achieved through policy changes that include more frequent eligibility verification, citizenship checks, tougher screenings of providers; and federal Medicaid funding cuts to states that offer coverage to residents living in the U.S. illegally.

The bill also seeks to impose work requirements for able-bodied adults aged 19 to 64 who do not have dependents, demanding they work at least 80 hours — or perform 80 hours of community service or other programs — per month. It includes exceptions for pregnant women. These requirements are more stringent than those included in Ohio’s Medicaid work requirements waiver that was recently submitted to the Federal government for approval. Ohio’s proposal applies to Medicaid expansion enrollees under age 55 who must be employed, be enrolled in school or a job training program, be in a recovery program, or have a serious physical or mental health illness to receive benefits.

These Federal Medicaid cuts threaten to force states to change how they finance their programs, to cut benefits, and/or to implement their own policy changes like adding cost-sharing requirements for beneficiaries in the program.

Following the release of the legislative language, the CBO issued a preliminary analysis finding that the health care portion of the bill would cut spending by $715 billion and would “reduce the number of people with health insurance by at least 8.6 million in 2034.”

For insights on how these Medicaid changes could affect you or your clients, contact BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com. 

MedicaidHealthcareHealthcare PolicyHealth LawDaphne Kackloudis
Client Alert

USCIS Policy Change Impacting Work Authorization: Advisory for Employers and Human Resources

December 8, 2025USCIS has issued a policy memorandum pausing immigration benefit processing for individuals from 19 high-risk countries and requiring a re-review of certain previously approved cases. This change may affect work authorization, employment verification, and workforce stability. Employers and HR teams should review impacted employees and update compliance procedures.Client Alert

CMS Releases CY 2026 Medicare Physician Fee Schedule Final Rule with Key Payment and Telehealth Updates

December 4, 2025CMS issued the CY 2026 Medicare Physician Fee Schedule Final Rule on October 31, 2025, with changes effective January 1, 2026. The Final Rule includes increases to the conversion factor, a new efficiency adjustment, updates to practice expense methodology, permanent telehealth policy changes, revised payment for skin substitutes, expanded rules for Part B drugs and biologicals, enhanced policies for Rural Health Clinics and Federally Qualified Health Centers, and new care management and behavioral health services.Client Alert

Ohio Department of Medicaid Updates: Key Changes to Physician Reimbursement Rates in Early Parenthood

December 3, 2025The Ohio Department of Medicaid has proposed amending Ohio Administrative Code Rule related to covered Medicaid reimbursements for physicians. Beginning on January 1, 2026, they are proposing an increase to rates for prenatal care, childbirth, and infant care and provider visits.Client Alert

Name, Image, and Likeness Agreements in Healthcare

November 14, 2025For example, some healthcare providers have begun to utilize "Name, Image, and Likeness" agreements to promote the brand they have created through their healthcare practice.  We have seen the most healthcare NIL activity with longevity and wellness providers, as well as orthopedics.Client Alert

Compounding GLP-1 Drugs - Recent Updates

November 13, 2025Recent guidance from the Ohio Board of Pharmacy (“BOP”) indicates that providers should generally use the FDA approved GLP-1 drug, rather than a non-FDA approved compounded version of the medication. Importantly, if a GLP-1 drug is commercially available, it cannot be copied through compounding. Currently, compounded copies of Tirzepatide and Semaglutide are not permitted.
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