Industry Watch Alert
Key Takeaways
The U.S. Senate passed a $3.3 trillion tax and spending package known as the “One Big Beautiful Bill,” which includes $930 billion in Medicaid and ACA-related healthcare reductions.
The Congressional Budget Office (CBO) projects that approximately 11.8 million Americans will lose health coverage by 2034 under the bill.
The legislation imposes Medicaid work requirements, rolls back ACA subsidies in 2026, and suspends Medicaid reimbursements to Planned Parenthood for one year.
Healthcare payer and provider executives should closely monitor how potential coverage losses and reimbursement shifts could affect population health management, value-based payment strategies, and operational compliance.
Key Takeaways
All 17 members of the CDC’s Advisory Committee on Immunization Practices (ACIP) have been removed by HHS Secretary Robert F. Kennedy Jr.
A new committee will be appointed ahead of the June 25–27 ACIP meeting in Atlanta.
The stated goal is to restore public trust and remove alleged conflicts of interest within the committee.
This is the first full dismissal of ACIP members since its inception in 1964.
The move has prompted mixed reactions across the healthcare sector, with concerns about transparency, continuity, and political influence.
The Impact
On July 1, 2025, the U.S. Senate passed a comprehensive tax and spending bill with significant implications for the healthcare sector. The nearly $3.3 trillion package includes:
- $930 billion in healthcare spending cuts over 10 years, targeting Medicaid expansion, Affordable Care Act (ACA) subsidies, and safety-net programs.
- Medicaid work requirements, which will require eligible non-disabled adults to verify employment, job-search activity, or qualifying exemptions to maintain benefits.
- A one-year ban on Medicaid reimbursements to Planned Parenthood, potentially reducing access to preventative services for more than 1 million Medicaid recipients.
- The sunsetting of enhanced ACA subsidies in 2026, a change projected to increase individual market premiums and reduce enrollment, especially among low-income populations.
According to the Congressional Budget Office, an estimated 11.8 million Americans could lose health coverage as a result of the bill’s provisions. While the House of Representatives must still pass the legislation, healthcare organizations are already preparing for potential operational and financial ripple effects.
Summary
The Senate’s approval of the “One Big Beautiful Bill” signals a major shift in federal healthcare priorities, placing cost containment and entitlement reform at the forefront of fiscal policy. With the proposed Medicaid reductions and ACA subsidy rollbacks, payer and provider organizations should prepare for:
- Increased uncompensated care burdens, particularly in rural or underserved markets.
- Disruptions in population health programs reliant on Medicaid managed care.
- Elevated compliance risks are tied to new eligibility verification requirements.
- Strategic re-evaluation of value-based care contracts and risk-bearing models.
Healthcare executives are advised to conduct scenario planning, revisit payer mix forecasts, and prepare communication strategies should coverage shifts occur in their service areas.
FAQ
Q1: Is this bill final?
No. The Senate passed the bill, but the House must still approve it. Provisions may change at the conference.
Q2: Who will be most affected by Medicaid changes?
Non-disabled adults in Medicaid expansion states, especially those with intermittent employment, could face the highest risk of losing coverage under new work requirements.
Q3: Will this affect private insurers?
Indirectly, yes. An increase in the uninsured population may elevate hospital uncompensated care costs, which historically contribute to higher commercial premiums.
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Sources
This alert was crafted via information gathered from the following sources. To learn more about the subject, please visit the following pages.
- CONGRESS.GOV
H.R.1 – One Big Beautiful Bill Act
https://www.congress.gov/bill/119th-congress/house-bill/1/text - Joint Economic Committee
Amended Senate Budget Bill Would Trigger Nearly 20 Million People Losing Health Insurance
https://www.jec.senate.gov/public/index.cfm/democrats/press-releases?ID=E59E9267-899E-40EC-BEBF-BC9778CBF165
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