Congress is weighing reforms to Medicaid with a goal of saving up to $880 billion as part of the budget reconciliation process.
Under these reforms, annual Medicaid spending would grow from $695 billion in FY 2025 to about $847 billion by FY 2034. Only in Washington can a $152 billion increase in annual Medicaid spending be spun as a “cut.”
If Congress implements reforms to lower Medicaid’s spending growth rate to 3% per year, spending will increase to $830 billion by FY 2034. This would generate $918 billion in total savings compared to the CBO baseline. Under this scenario, there would still be a cumulative 10-year spending increase of $1.112 trillion.
