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Energy and Commerce Committee Votes to Approve ACA, Medicaid Cuts

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Energy and Commerce Committee Votes to Approve ACA, Medicaid Cuts

April 27, 2012

On April 25, the House Energy and Commerce Committee passed a package of spending cuts to the Affordable Care Act (ACA) and federal Medicaid initiatives, in addition to others. The votes came as part of a reconciliation process underway in several House committees aimed to cut mandatory spending in certain programs in order to bring overall spending in line with the House-approved budget passed several weeks ago.


The cuts to Medicaid initiatives include repealing maintenance-of-effort requirements for states to keep in place certain Medicaid eligibility standards, repealing an increased Medicaid match rate for territories, and reducing the state provider tax threshold. The cuts to the ACA include repealing the Prevention and Public Health Fund, eliminating grants to states for establishing health insurance exchanges, canceling funding for consumer-governed health insurance plans and eliminating scheduled bonuses to hospitals that serve low-income patients. 


The proposed cuts will be included in a larger reconciliation package expected to be voted on by the full House in May. The Senate is not expected to approve the cuts as proposed.


For more information, see the press release issued by the committee.