House Republicans are casting a new analysis from the Department of Health and Human Services as vindication of one of the most contested pieces of last year’s spending law, seizing on the finding that Medicaid financing curbs in the One Big Beautiful Bill Act will drive down non-Medicaid healthcare prices by up to 3.5% in markets with provider taxes by 2034.
As of Thursday, party leaders were pointing to the report as ammunition against Democrats’ attacks on the law heading into the 2026 midterms.
The HHS Office of the Assistant Secretary for Planning and Evaluation projects that provisions curbing state-directed payments and provider taxes will save non-Medicaid payers an estimated $502 billion to $875 billion between 2025 and 2034, with annual savings settling at $100 billion to $175 billion once the reforms are fully phased in.
Source: GOP Touts HHS Study on Medicaid Cost Savings / NewsMax