H.R. 1 – One Big Beautiful Bill Act, amended by the Senate, passed the House and was signed into law on July 4th. This new legislation features the largest cuts to healthcare benefits (Medicaid and Medicare) in U.S. history. It also provides almost $1.3 trillion in tax cuts to the uber-wealthy and corporations, paid for by the most vulnerable Americans by way of $930 billion in cuts to Medicaid over the next 10 years.
In a fact sheet issued by the Alliance for Retired Americans, the ARA detailed some of the ways this legislation harms retirees.
- The deep Medicaid cuts put 1.4 million nursing home residents in harm’s way. More than half of nursing homes will have to cut staff, and one in four may shut down entirely — leaving families scrambling to provide care for loved ones.
- Low-income seniors and people with disabilities will pay more for prescription drugs and Medicare premiums, forcing them to choose between health care and other basic needs.
- 6.5 million older Americans could lose food assistance due to a 20% cut to the Supplemental Nutrition Assistance Program (SNAP).
- Accelerates Social Security and Medicare insolvency by one year by less revenue going into Medicare’s Trust Fund.
- Creates a new loophole for drug corporations that prevents Medicare from negotiating lower prices for some high-cost prescription drugs.
- 300 hospitals — especially in small towns and rural communities — are at risk of closing or slashing services, forcing Americans of all ages to travel farther and wait longer for care.
Because the bill increases the deficit by almost $3.3 trillion, it triggers $490 billion in cuts to Medicare over ten years, due to Pay-As-You-Go (PAYGO) rules. Medicare is subject to PAYGO rules. PAYGO means that if a bill increases spending or reduces revenue, it must be offset by corresponding spending cuts or revenue increases to maintain budget neutrality.
Washington Apple Health is the state’s brand name for Medicaid, according to the Washington State Health Care Authority. It provides free or low-cost health insurance coverage to eligible Washington residents. Apple Health often helps seniors on Medicare with their Medicare premiums, as well as long-term services and support. To check on eligibility for Washington’s Apple Health, visit the HCA website.
Washington State lawmakers are expecting a possible special legislative session to address the shortfalls in Federal funds as a result of H.R. 1, and how it will affect Washington’s multi-billion dollar deficit.