RISE summarizes recent regulatory-related headlines.
CBO analysis of Republican Medicaid proposals points to benefits cuts, coverage terminations
A new Congressional Budget Office (CBO) report analyzes several Republican proposals for Medicaid that may be included in their reconciliation bill. The letter, in response to a request from Senator Ron Wyden, (D-Ore.) ranking member of the Senate Finance Committee, and Rep. Frank Pallone, Jr., D-N.J., ranking member of the Committee on Energy and Commerce, reviews various options that would cut Medicaid and lead to benefit cuts, health insurance terminations, and reduced payments to providers. Federal reductions in Medicaid spending would likely lead to states taking a combination of four actions:
Federal reductions in Medicaid spending would likely lead to states taking a combination of four actions:
- States spending more on Medicaid by using a mix of tax increases and cuts to other programs
- Cutting payments to health care providers
- Cutting optional benefits, such as home-based care and mental health care
- Taking away health insurance from people who rely on Medicaid
In a statement, both Wyden and Pallone said that the proposals will result in millions of people losing their health care in order to provide tax breaks to billionaires. The CBO analysis indicates that 1.5 million to 3.5 million people will lose their health insurance depending on which options lawmakers include in the reconciliation bill.
A recent report from the Commonwealth Fund also looked at potential cuts to Medicaid funding and finds that children whose eligibility is not required by federal law are at risk of losing their health coverage. Based on data from the Centers for Medicare & Medicaid Services, about 21 percent of Medicaid-enrolled children who received care fell into an optional category.
Aetna to pull out of ACA marketplace
Nearly a million Americans in 17 states may lose their health care coverage as a result of Aetna’s announcement that it will leave the Affordable Care Act (ACA) marketplace. CVS Health announced plans to have Aetna withdraw from the ACA due in part to the end of ACA tax credits and other financial incentives next year. “The Company is best able to serve members through its other health benefit solutions, which offer access to quality care, affordable health benefits, and exceptional service,” CVS said in a statement, noting it will continue to support its individual exchange members through 2025 and residual activities in 2026.
HHS announces ACL grant award opportunity
The Department of Health and Human Services’ Administration for Community Living has released $1.1 billion in funding and new grant opportunities to provide critical services to older adults, people with disabilities, and their family caregivers. The Older Americans Act formula grant funding will be issued to all 50 states and six territories, as well as 293 tribes and tribal organization nationwide. HHS said the funding reflects its commitment to sustaining and strengthening critical community-based programs.
“We stand with our elders and individuals with disabilities—we don’t abandon them,” said HHS Secretary Robert F. Kennedy, Jr. “This funding directly invests in dignity, protects independence, and affirms every American’s right to age with respect and community. Restoring humanity to our health system is not optional—it’s the foundation of how we Make America Healthy Again.”
Over the next two weeks, ACL will release more than $1.1 billion to complete the full release of FY 2025 funding to formula grant recipients, ensuring services continue without interruption. These grants support a wide array of low-cost services that reach one in six older adults annually, and address significant needs such as nutrition, assistance with daily living activities, chronic disease management, and the prevention of abuse, neglect, and exploitation. The funding also strengthens resources for family caregivers, recognizing their vital role in supporting aging loved ones.