CBO Analysis Shows Medicaid Cuts Would Terminate Coverage for Millions, Including People with Medicare

This week, the non-partisan Congressional Budget Office (CBO), a Congressional agency that conducts independent analyses of economic and budget issues, estimated costs and projected state actions related to five Medicaid policy proposals. CBO did this work at the request of Senator Ron Wyden (D-OR) and Congressman Frank Pallone (D-NJ).

CBO’s Projections

The policy options CBO evaluated have all been floated as avenues to cut Medicaid funding. Importantly, while Congressional Republicans have argued that they are not out to harm people with Medicaid coverage, each of the options would take health coverage and access from millions.

Option 1 would reduce the federal government’s share of responsibility (also called the “FMAP”) for the Medicaid expansion population: 5.5 million people being kicked out of Medicaid, and 2.4 million people going uninsured.

Option 2 would limit provider taxes that states use to cover portions of their Medicaid funding: 8.6 million people being kicked out of Medicaid, and 3.9 million going uninsured.

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https://www.medicarerights.org/medicare-watch/2025/05/08/cbo-analysis-shows-medicaid-cuts-would-terminate-coverage-for-millions-including-people-with-medicare