Ban on immigrant Medicaid coverage, provider tax increases axed from OBBBA - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
June 27, 2025 Newswires
Share
Share
Post
Email

Ban on immigrant Medicaid coverage, provider tax increases axed from OBBBA

Thérèse Boudreaux | The Center SquareThe Courier-Times

(The Center Square) – Republicans' chances of passing the One Big Beautiful Bill Act by next week have narrowed considerably, with the Senate parliamentarian ruling out several Medicaid-changing provisions that held hundreds of billions in savings.

The House-passed OBBBA, a multitrillion-dollar budget reconciliation bill fulfilling President Donald Trump's policy agenda, has already undergone Senate committee revisions and is currently under the parliamentarian's review.

While the core elements of the House's bill remain intact – extending the 2017 tax cuts, boosting national defense resources, and reforming entitlement programs like Medicaid and food stamps – Senate Republicans made significant changes.

One of the more controversial edits related to the bill's healthcare section. The House-passed OBBBA found more than $700 billion in potential savings via Medicaid modifications, including changing eligibility requirements back to pre-COVID-19 standards; imposing work-related requirements on most able-bodied adults without dependents; and closing financial loopholes often exploited by states.

The House plan also reduced the federal matching rate for states that allow illegal immigrants to enroll in Medicaid, barred Medicaid coverage of gender transition surgeries or hormone blockers for minors, and froze the Medicaid provider tax at 6%.

Seeking deeper savings, Senate committees slashed the provider tax cap nearly in half, barring states from taxing Medicaid providers by more than 3.5% by the 2030s and inciting bipartisan pushback.

Committees also expanded the gender transition coverage ban to all Medicaid recipients, not just minors, and barred most noncitizens from using premium tax credits to buy health insurance via the Affordable Care Act Marketplace.

But Republicans' work collapsed Thursday after the Senate parliamentarian found that most of those provisions violated the Senate's Byrd Rule, which limits budget reconciliation bills to provisions with direct budgetary impacts.

Among other healthcare-related items, the parliamentarian axed the federal penalty on states who enroll illegal immigrants in Medicaid; the ban on Medicaid coverage of gender transition procedures; limits on Medicaid eligibility for noncitizens; and the Senate's lowering of the Medicaid provider tax cap.

Republican senators must now either strip these provisions from the bill or lose the ability to pass the legislation via a simple majority vote. Lawmakers may try to rewrite some of the provisions and resubmit them, but will likely still have to find other cost-saving avenues.

The Senate parliamentarian still hasn't ruled on whether a provision barring Medicaid funds from going to abortion providers can stay.

Older

Big Beautiful Bill and Obamacare

Newer

OPINION: Talk of the Town

Advisor News

  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • MEDICAID PAYMENT TRANSPARENCY RULES: STATE REPORTING REQUIREMENTS AND LIMITATIONS
  • Medicare open enrollment continues through Dec. 7
  • Pike County facing year-end employee healthcare lapse
  • Investigators at University of Pennsylvania Report New Data on Managed Care (In-hospital Medicaid enrollment facilitates follow-up care for emergency general surgery patients): Managed Care
  • New Findings from University of Pennsylvania in the Area of Managed Care Described (Association of Neighborhood Socioeconomic Disadvantage With Excess Mortality Among Medicare Beneficiaries: Examining an Empirical Basis for Social Risk …): Managed Care
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and Its Subsidiary
  • National Life Group Approves $23 Million Dividends for 2027
  • Milliman’s proposed $15.5 million settlement puts life insurance underwriting data in focus
  • Brighthouse Financial Announces Third Quarter 2026 Results
  • Prudential earnings dip as Japan sales suspension offsets U.S. growth
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.