Trump administration implements major Medicaid and Medicare funding changes

The Trump administration has introduced significant changes to federal healthcare funding. The One Big Beautiful Bill Act is projected to reduce federal Medicaid funding by nearly $1 trillion over the next decade. In California, officials estimate this could result in an annual loss of approximately $30 billion for Medi-Cal, potentially affecting coverage for 15 million low-income residents.

Additionally, the administration has decided to end the Medicare Part D Premium Stabilization Demonstration program one year earlier than planned, concluding it after 2026 instead of 2027. CMS Administrator Mehmet Oz stated the move is intended to save nearly $4 billion, arguing that the previous subsidy program was an unnecessary use of taxpayer money. While Oz noted that monthly premiums for some beneficiaries might decrease, experts warn that the early termination could lead to higher monthly payments for others, particularly those with limited income, as insurers adjust to recent legislative changes.