EMS agencies should pay close attention to the potential Medicaid and Medicare changes proposed in this bill that will likely impact reimbursements to EMS agencies. Specifically:
Medicaid –
- Reduces the number of Medicaid beneficiaries through work requirements and other eligibility limitations.
- Bars states from using State Directed Payments to require Medicaid HMOs from reimbursing more than 100% of Medicare reimbursement for similar services, or 110% of Medicare in non-Medicaid expansion states.
- Mandates cost-sharing up to $35 for services provided to Medicaid expansion enrollees with incomes above the federal poverty level, which is $15,650 for a single person.
- Limits retroactive provider reimbursements for newly enrolled Medicaid recipients to one month instead of three.
Medicare –
- Triggers Medicare cuts under the Statutory Pay As You Go Act of 2010 that could include reductions in provider reimbursements.
Also recall that CMS released a proposed rule last week, that according to the language in CMS' release, "would end states’ ability to exploit a health care-related tax loophole currently used by seven states to generate billions in federal Medicaid payments—without contributing their fair share or expanding care for Medicaid enrollees".
We recommend strong engagement with local and national EMS advocacy organizations and keeping abreast of these potential legislative and regulatory changes.
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What the 'One Big Beautiful Bill' does on healthcare
Michael McAuliff
May 22, 2025
https://www.modernhealthcare.com/politics-policy/big-beautiful-bill-medicaid-medicare-pbms
The House passed a sweeping tax-and-spending cuts bill Thursday that would dramatically reshape the healthcare system by slashing more than $1 trillion from Medicaid and other programs.
The majority Republican lower chamber voted 215-214 to approve the One Big Beautiful Bill Act of 2025 just before 7 a.m. EDT after an all-night floor debate. Attention now shifts the GOP-led Senate, which has not commenced public debate on its tax measure. Congress is scheduled to begin a recess Friday and will return to Washington on June 2.
The legislation was in flux all week as Republican leaders sought to balance the competing demands of hard-line conservatives who wanted deeper spending cuts and swing-district members pushing the other direction. As a consequence, the details changed, the final legislative language didn't emerge until late Wednesday, and the nonpartisan Congressional Budget Office and Joint Committee on Taxation couldn't keep up.
But the thrust of the package remained the same, even as the particulars and the numbers fluctuated. To partially offset about $3.8 trillion in lost federal revenue over 10 years from extending the tax cuts President Donald Trump enacted during his first term, House Republicans seek to reduce federal spending by hundreds of billions of dollars, according to the most recent CBO analyses. The largest source of those savings is Medicaid.
These are the key healthcare provisions from the One Big Beautiful Bill Act:
Medicaid
Establishes work requirements for adult enrollees who don't have disabilities or dependents that would begin no later than Dec. 31, 2026, and directs the Health and Human Services Department to issue guidance to states on this policy by the end of this year. Beneficiaries would have to document at least 80 hours a month of work or other qualifying activity, such as volunteering. The CBO estimated this would reduce spending by $280 billion based on an earlier iteration that wouldn't have taken force until 2029.
Bans new or increased state provider taxes and tightens standards for what provider taxes are legally permissible. The bill also bars most states from using state-directed payments to order Medicaid managed care companies to pay providers more than 100% of Medicare rates, but states that haven't expanded Medicaid under the Affordable Care Act of 2010 would be able to pay up to 110% of Medicare. Combined, these would cut federal spending by $197 billion, although the CBO analysis was based on a previous version of the bill that limited all state-directed payments to 100% of Medicare.
Orders states to maintain updated information on Medicaid enrollees, such as verifying addresses and removing deceased people from the rolls. This would save $17 billion.
Suspends a 2024 Centers for Medicare and Medicaid Services regulation designed to ease enrollment in Medicaid, the Children's Health Insurance Program and the Basic Health Program. Federal spending would be $82 billion lower under this policy.
Requires eligibility redeterminations every six months for adults covered under the ACA Medicaid expansion. This would cut spending by $53 billion.
Mandates cost-sharing up to $35 for services provided to Medicaid expansion enrollees with incomes above the federal poverty level, which is $15,650 for a single person. That is projected to reduce spending by $13 billion.
Limits retroactive provider reimbursements for newly enrolled Medicaid recipients to one month instead of three. That is projected to save $6 billion.
Reduces federal Medicaid funding to states that use their own money to cover undocumented immigrants through Medicaid. This would cut spending by $11 billion.
Cancels a regulation setting staffing minimums for nursing homes. This would reduce spending by $23 billion.
Eliminates extra federal Medicaid funding from the American Rescue Plan Act of 2021 intended to encourage states to expand Medicaid under the ACA. The provision is estimated to save $881 million.
Delays cuts to Medicaid disproportionate share hospital payments for three years. That would increase spending by $16 billion.
Medicare
Increases Medicare physician reimbursements 2% in 2026 and pegs future payment updates to the Medicare Economic Index. In addition, this provision would eliminate extra payments to physicians participating in alternative payment models. These policies would cost $8 billion.
Triggers Medicare cuts under the Statutory Pay‑As‑You‑Go Act of 2010 that could include reductions in provider reimbursements. Because the bill would increase the budget deficit by $2.3 trillion, the CBO projects the White House Office of Management and Budget would have to curtail Medicare spending by $45 billion in 2026 and $490 billion from 2027 to 2034.
Suspends a rule to facilitate enrollment in Medicare Savings Programs that cater to low-income people eligible for Medicare and Medicaid by pushing back the effective date to 2035. Savings are estimated to be $84 billion.
Expands rural emergency hospitals program. There was no cost estimate for this part of the bill.
Ends Medicare eligibility for some lawfully present foreign nationals who currently qualify by limiting the program to permanent residents who are green card holders, from Micronesia, the Marshall Islands or Palau, or, in certain cases, from Cuba. This would save $132 million.
Health insurance exchanges
Institutes stricter eligibility and income verifications for exchange customers and requires new checks for low-income enrollees with zero-premium plans. This would save $101 billion.
Shortens open enrollment period by one month.
Ends permanent special enrollment opportunity for people with incomes up to 150% of poverty and bars federal and state exchanges from establishing special enrollment periods linked to income.
Allows health insurance companies to demand premium payments before beginning coverage and to remove customers who are in arrears, regardless of income.
Ends automatic enrollment into Silver-level plans for low-income exchange customers with Bronze-level plans who qualify for cost-sharing reductions that can only be applied to Silver plans.
Those provisions combined would reduce spending by $101 billion.
Restores cost-sharing reduction payments to health insurance companies covering the lowest-income exchange policyholders, which Trump cut off in 2017. A CBO analysis from 2018 said that would reduce federal spending by $19 billion, in part because it would enable insurers to reduce premiums, which would decrease spending on premium tax credits. The bill also would withhold cost-sharing reduction payments for insurance plans that cover abortion.
Requires full repayment of excess premium tax credits regardless of enrollee income. Savings are projected to be $2.3 billion.
Expands ICHRAs — individual coverage health reimbursement arrangements — by permitting employees offered these plans to buy exchange coverage with pre-tax dollars. Creates tax credit for small employers that offer ICHRAs. This is projected to cut spending by $514 million.
Limits lawful immigrant access to unsubsidized exchange coverage and makes Deferred Action for Childhood Arrivals recipients ineligible for subsidies. This section would save $63 billion.
Bans gender-affirming care as an Essential Health Benefit under the ACA as well as Medicaid and CHIP coverage of these services. This would reduce spending by $830 million.
Pharmacy benefit managers
Requires greater transparency for PBMs in Medicare Advantage and Medicare Part D.
Orders PBMs to "delink" their compensation from the discounts they negotiate with drugmakers and instead charge set fees under Medicare Part D.
Those provisions combined would reduce spending by $402 million.
Bans spread pricing, a practice under which a PBM charges more for a medicine than the price it secured from the drug company. This would save $3 billion.
Health savings accounts
Relaxes rules governing HSAs, such as raising the annual contribution limit, declaring individual market Bronze and Catastrophic plans compatible with HSAs, and making gym memberships and some other sport and fitness costs HSA-eligible. These policies would result in $25 billion in lost tax revenue.