The House GOP funds blueprint is elevating issues for a lot of Americans who depend on Medicaid.
On Tuesday, February 26, the House accredited the plan with a slender vote of 217-215, with all Democrats and one Republican voting in opposition to it. However, House Speaker Mike Johnson advised reporters that the invoice “doesn’t even point out Medicaid.”
“The phrase ‘Medicaid’ will not be even on this invoice,” House Majority Leader Steve Scalise added. “This invoice doesn’t even point out the phrase ‘Medicaid’ a single time.”
While the invoice technically doesn’t embrace direct cuts to Medicaid, the substantial funds reductions proposed would inevitably influence the healthcare program. As of the most recent information from October 2024, over 72 million folks nationwide are lined by Medicaid, in accordance with the Centers for Medicare and Medicaid Services. In addition to Medicaid, the Children’s Health Insurance Program (CHIP) covers over 7 million kids.
President Donald Trump had beforehand promised on Fox News that Medicaid, together with Medicare and Social Security advantages, would stay untouched throughout his presidency.
“Social Security received’t be touched, apart from fraud or one thing — we’re going to seek out it’s going to be strengthened — however received’t be touched,” Trump advised host Sean Hannity final week. “Medicare, Medicaid, none of that stuff goes to be … it’s not going to be touchable.”
With the potential for vital funds cuts, study extra about this extensively relied-upon insurance coverage program and what the invoice proposes.
What Is Medicaid?
Medicaid is a government-sponsored medical insurance program that gives protection to low-income people and households. It is collectively funded by the federal and state governments, with every state managing its personal program inside federal tips. Medicaid helps cowl a variety of healthcare companies, together with hospital visits, physician’s appointments, prescription medicines, and long-term care, providing essential assist for many who might not have entry to different types of medical insurance.
Is Medicaid Being Cut?
The funds, which requires a complete of $2 trillion in spending cuts, might not explicitly point out Medicaid, but it surely directs the House Energy and Commerce Committee, which oversees Medicaid, to cut back spending by no less than $880 billion over the subsequent 10 years as a part of efforts to cut back the nationwide debt.
What Is the No Tax on Overtime Bill?
The invoice not solely goals to finish taxes on time beyond regulation pay but in addition targets taxes on suggestions, a key side supported by employees within the hospitality trade, together with bartenders, servers, and valets.
Under the present tax code, suggestions of $20 or extra per thirty days, together with money and card funds, are topic to withholding. Employers are required to withhold earnings taxes, together with the worker’s share of Medicare and Social Security taxes.
The Fair Labor Standards Act ensures non-exempt workers obtain time-and-a-half pay for time beyond regulation (over 40 hours per week). Overtime is at the moment taxed as common earnings, which seems as withholding on workers’ paystubs. However, salaried workers are ineligible for time beyond regulation pay or suggestions.