Budget Reconciliation Law Projects $1 Trillion in Federal Medicaid Cuts and 10 Million More Uninsured

The One Big Beautiful Bill Act signed in July 2025 makes substantial changes to Medicaid and ACA Marketplace programs, with CBO projecting over $1 trillion in federal Medicaid spending reductions by 2034 and 15 million people losing coverage when combined with expiring ACA subsidies. The legislation also expands orphan drug exemptions from Medicare drug price negotiation and affects 340B covered entity status, creating implications for how life sciences companies engage with state Medicaid programs. Manatt's analysis emphasizes that impacts will vary significantly by state based on their individual Medicaid policies and current coverage distribution.

Managed Care · Pharmacy · Finance

This is outside commentary from Manatt Health, not part of Medicaid Monitor's independently scored news coverage.

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