Executive Exchange: Federal Cuts on Medicare and Medicaid - What It Means

The 2025 budget reconciliation bill proposes significant cuts to both Medicaid and Medicare, totaling an estimated $500 billion to $800 billion over the next decade. These cuts could impact access to care, especially for older adults and those with disabilities, and potentially lead to increased out-of-pocket costs.  Reduced federal funding for Medicaid could force states to make difficult choices, such as raising taxes, cutting other programs, or reducing Medicaid benefits. This could lead to fewer people being covered, reduced access to services, and lower payment rates for providers. Medicare cuts could trigger an automatic 4% reduction in Medicare spending, impacting payments to hospitals, physicians, and other healthcare providers. Learn how peers are dealing with the funding shifts