GOP’s July 4 Sprint: Medicare in the Crosshairs for “Megabill” Savings
GOP’s July 4 Sprint: Medicare in the Crosshairs for “Megabill” Savings
As the clock ticks towards a self-imposed July 4 deadline, Senate Republicans are locked in intense, closed-door negotiations over their ambitious tax and spending “megabill,” and a politically charged target has emerged: Medicare. Facing pressure from budget hawks to find deeper spending cuts, GOP lawmakers are now seriously considering provisions impacting the federal health insurance program for seniors, a move that could generate tens of billions in savings but risks significant backlash.
Discussions this week, including a White House meeting with President Donald Trump, have centered on identifying “waste, fraud, and abuse” within Medicare. While any direct cuts to benefits are off the table, sources indicate a focus on areas like overpayments to privately-run Medicare Advantage plans, an idea that has previously garnered some bipartisan interest but faces pushback from the powerful insurance industry. Senate Majority Leader John Thune (R-SD) confirmed that “anything that is waste, fraud and abuse are obviously open to discussions” across government programs.
Crucially, some Republicans believe President Trump is more amenable to these targeted Medicare adjustments than previously thought, as long as they don’t impact beneficiary services. Senator Ron Johnson (R-WI), who attended the White House meeting, told reporters he felt the President was “open to any elimination of any waste, fraud and abuse… wherever,” while emphasizing Trump’s desire to avoid cutting benefits.
The push to scrutinize Medicare comes as Senate Republicans aim to surpass the $1.6 trillion in cuts proposed by the House version of the bill. The search for additional savings is complicated by various committees, such as Agriculture, potentially shrinking their projected cuts compared to the House. Beyond Medicare, senators are also exploring other avenues, including ratcheting down the state-and-local-tax-deduction (SALT) cap and implementing stricter work requirements for Medicaid recipients.
Despite the urgency and the high stakes, the path forward remains fraught. House Speaker Mike Johnson (R-LA) has expressed a desire for the Senate to make minimal changes to the House-passed bill, and past attempts to overhaul Medicare Advantage have failed to gain traction due to discomfort from moderate lawmakers. As the July 4 deadline looms, the inclusion of Medicare provisions in the Senate’s megabill will be a critical test of GOP unity and their ability to navigate a politically perilous legislative landscape.
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