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American Focus > Blog > Health and Wellness > Trump tax bill: Health care impact revealed in CBO report
Health and Wellness

Trump tax bill: Health care impact revealed in CBO report

Last updated: June 4, 2025 8:23 am
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Trump tax bill: Health care impact revealed in CBO report
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The recently published projections from the Congressional Budget Office reveal that the tax bill proposed by House Republicans could result in nearly 11 million people losing their health insurance. This loss of coverage is seen as a crucial source of savings to help fund President Trump’s tax cuts, but it has raised concerns among Democrats who argue that the bill unfairly targets low-income individuals to benefit the wealthy.

According to the official projections, approximately 7.8 million people would lose their Medicaid coverage, while the rest of the losses would come from the Affordable Care Act’s exchanges. Among those affected would be 1.4 million immigrants and individuals without legal status. The bill imposes new restrictions on health insurance for states that cover undocumented immigrants using their own funds.

The impact of the bill on federal health care programs is significant, with an estimated increase in the federal deficit by $2.4 trillion over a decade. The bill extends Trump’s tax cuts and introduces new ones, with lower tax rates alone costing $2.2 trillion over the same period. The report also highlights the potential loss of coverage for 4.4 million individuals without the renewal of enhanced premium tax credits that help people purchase ACA coverage.

Hospitals, recognizing their vulnerable position, are expected to push for changes in the Senate to mitigate enrollment losses. The bill’s provisions on health care focus on Medicaid cuts and reforms to the Affordable Care Act marketplaces. One major component is the inclusion of work requirements for Medicaid recipients, which could lead to significant savings.

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The bill also includes measures to limit states’ ability to increase federal funding for their Medicaid programs, as well as reforms to drug pricing and payments to doctors. Overall, the bill represents one of the most substantial cuts to federal health care programs in history, prompting scrutiny and debate among lawmakers.

As the Senate considers amendments to the bill, concerns about Medicaid cuts and work requirements persist. While Republicans aim to pass the bill before July 4, the looming deadline may be tied to the government reaching its borrowing limit around August. The CBO projections serve as a critical tool for evaluating the potential impact of the bill and shaping the future of health care policy in the United States.

TAGGED:BillcareCBOHealthimpactreportRevealedtaxTrump
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