Medicaid Reforms In The One Big Beautiful Bill: Myths vs. Facts
- Staff Writer
- Jul 16
- 2 min read

The Democrats and the Mainstream Media are determined to spread misinformation about President Trump’s One Big Beautiful Bill. The facts show that this bill will help nursing homes by rescinding burdensome Biden-era rules. It will put work requirements on Medicaid coverage for able-bodied adults while protecting those most vulnerable. The OBBB will also phase out the Provider Tax Scam, which some states have used to steal millions of dollars from Federal taxpayers by exploiting a loophole in our healthcare laws. Republicans should celebrate these wins and clearly communicate them to voters.
The OBBB Will Not Cause Needy People To Lose Coverage
The provisions in the OBBB are targeted at people who were ineligible and never should have been on Medicaid in the first place, such as illegal immigrants and people who misrepresented their income to qualify for subsidies. The disastrous predictions bandied about by Democrats come from the Congressional Budget Office (CBO), an organization that has consistently made inaccurate estimates.
Limiting The Provider Tax Scam
The Provider Tax system places the burden of state healthcare spending on Federal taxpayers. The state raises taxes on providers, then reimburses the providers by paying exorbitant healthcare fees, and then bills the Federal government for the exorbitant healthcare fees. The OBBB will phase out this scam by reducing the amount that states can raise through provider taxes.
The OBBB Helps Nursing Homes
The Biden administration imposed rules on nursing homes that raised nursing home staffing costs. The OBBB rescinds that rule. The community-engagement provision, which introduces work requirements, only applies to able-bodied working-age adults, not adults in nursing homes. Other provisions of the OBBB contain specific exemptions for nursing homes in order to ensure that nursing homes are not affected.