Elon Musk, the CEO of SpaceX and Tesla, has been appointed by President Donald Trump to lead a new task force called the Department of Government Efficiency (DOGE). As part of this role, Musk is tasked with cutting government waste and fraud. Medicaid, a healthcare program for low-income individuals, is now on the radar.
Musk recently called for cuts to entitlement spending in an interview with Fox Business Network host Larry Kudlow. He estimated that $6-$700 billion per year could be saved by eliminating entitlement spending. This estimate includes funds allocated to Medicare and Medicaid.
While Musk’s comments on Medicaid were vague, experts warn that significant funding cuts are likely. Robin Rudowitz, director of the program on Medicaid and the uninsured at KFF, told NBC News that if federal funding is reduced, states will struggle to balance coverage. To avoid cutting enrollees, states may reduce covered services or implement stricter eligibility requirements.
The long-term impact of Medicaid cuts could be severe. Bridget Haeg, healthcare director at LLYC US, explained that a slash to Medicaid’s budget could affect more than just healthcare. States might look at cuts to sectors such as education or transportation to preserve healthcare funding.
Republican House Speaker Mike Johnson has promised not to cut Medicaid benefits, but experts say this is misleading. Edwin Park, research professor at the McCourt School of Public Policy at Georgetown University, believes that proposed Medicaid cuts are similar to those included in failed 2017 Affordable Care Act repeal and replace bills.
As Musk’s DOGE takes on Medicaid, Americans should be aware of three potential changes: limited access for people who depend on Medicaid, cuts to other important sectors, and reconsideration of long-term care plans. The future of this critical healthcare program hangs in the balance as politicians weigh options for reducing waste and fraud.
Source: https://finance.yahoo.com/news/3-things-watch-elon-musk-210110506.html