The tax bill recently signed by President Trump represents the biggest cuts in federal health care costs, according to several experts, and by 2034, as many as 12 million Americans could leave without insurance.
That's according to the Congressional Budget Office, but some thought tanks and analysts suggest that numbers may be low. In June, Jeffreys analysts estimated the impact would be uninsured for between 6 and 7 million people.
The bill will not extend subsidies for the Affordable Care Act market health plans introduced during the Covid-19 pandemic. The bill could also strip the bridge of compensation from unemployment or other life-changing events, further increasing the costs and burdens for some individuals.
Additionally, the bill will cut a significant amount of funding from Medicaid funds to 2034. This includes Medicaid funding until 2034. Includes state taxes used to increase the amount of Medicaid dollars received by health care providers.
Read more: What is a Healthcare FSA? How to save on medical expenses.
In 2024, the US spent $1.9 trillion on healthcare, or about 27% of the total federal budget. According to KFF, it includes Medicare and Medicaid, the latter accounting for 8% of that total.
On Monday, Jeffries analysts said the bill is likely to have the most impact on healthcare providers, such as doctors and hospitals, but the delayed timeline for implementation would provide ample cushioning.
“In recent years, we remain positive about the basic outlook for (healthcare) service providers, given our belief that utilization trends are strong and lead to continuous volume/revenue growth. Given the many staged or later implementations of these policies, we do not expect any impact on the fundamentals by 2026,” the analyst wrote.
Anjalee Khemlani is a senior health reporter at Yahoo Finance, covering Pharma, Insurance, Care Services, Digital Health, PBMS, Health Policy and Politics. Of course, it includes the GLP-1. Follow Anjkhem as Anjkhem on social media platforms X, LinkedIn, and Bluesky @Anjkhem.
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