June 29, 2025


Senator Rick Scott Proposes Major Medicaid Reform in GOP Megabill

In a bold move that could reshape the future of Medicaid financing in the United States, Florida Senator Rick Scott has introduced an amendment to the sweeping GOP megabill that aims to terminate a significant Medicaid financing mechanism by the end of 2030. The proposed change, which has garnered the support of Senate Majority Leader John Thune, emerged from intense last-minute negotiations on Friday night.

The amendment is expected to take center stage during the upcoming "vote-a-rama" session in Congress, where lawmakers will engage in an overnight marathon of debates and votes on dozens of proposed amendments. This session, taking place from Sunday into Monday, promises to bring critical issues to the fore of legislative scrutiny.

Senator Scott expressed confidence about the approval of his amendment, stating on Sunday, "I'm very confident that my amendment is going to pass." However, not all Republicans share his optimism, with several expressing concerns about potential deep cuts to Medicaid funding.

Under Scott’s amendment, the federal government's current commitment to cover 90 percent of the costs for Medicaid enrollees who became eligible under the 2010 Affordable Care Act would cease on December 31, 2030. Post-2030, new enrollees would receive federal support at the significantly lower Federal Medical Assistance Percentage (FMAP) rate, which can drop to as low as 50 percent, leaving states to cover the remaining costs. Those enrolled before the cutoff would continue to benefit from the higher reimbursement rates.

The amendment has attracted co-sponsorship from notable Republican Senators including Ron Johnson of Wisconsin, Mike Lee of Utah, Cynthia Lummis of Wyoming, and Mike Crapo of Idaho, the Finance Chair. Their collective endorsement underscores a significant push within certain GOP factions to overhaul how Medicaid is funded on a federal level.

As the vote-a-rama approaches, the healthcare community and Medicaid beneficiaries are closely watching the developments. The outcome could have far-reaching implications for millions of Americans who rely on Medicaid for healthcare services, as well as for state budgets that could be left to manage increased financial burdens. This legislative move highlights the ongoing debates within the U.S. about the balance of federal and state responsibilities in healthcare funding, a topic that remains as contentious as it is vital to the welfare of many.