Advocates are urging Senate Republicans to reject a proposal that would cut billions from American healthcare to extend tax breaks benefiting the wealthy and corporations. The proposal involves significant cuts to Medicaid, a crucial health insurance program covering 71 million low-income and disabled Americans. The Senate version of this bill, part of Donald Trump’s legislative agenda, deepens cuts to Medicaid and Obamacare plans, making it harder for states to fund Medicaid coverage and expanding paperwork requirements. If passed, this bill would make the largest Medicaid cuts since the program’s inception in 1965 and could leave 16 million people uninsured by 2034.

Critics argue that these cuts target the most cost-efficient healthcare program and would have severe implications, affecting millions of Americans. The Senate’s bill also takes aim at Medicaid’s complex financing structures, particularly by capping provider taxes and state-directed payments. These cuts could lead to multibillion-dollar shortfalls in state budgets, impacting essential services like healthcare and education. Furthermore, the bill includes work requirements that experts predict will cause eligible individuals to lose coverage.

Opponents of the bill emphasize that cutting Medicaid and attacking its financing mechanisms will have far-reaching consequences, potentially resulting in increased healthcare costs for all Americans. The Senate bill’s approach to Medicaid financing and state-directed payments could disrupt the healthcare system and lead to unintended knock-on effects, such as rising medical debt and increased costs for insured individuals. Despite these concerns, Republicans aim to pass the bill by July 4th.