www.axios.com /2025/06/05/senate-republicans-medicare-trump-budget

Senate GOP eyes Medicare cuts with Trump's blessing

Stef W. Kight,Peter Sullivan,Hans Nichols 4-4 minutes 6/5/2025
This is Donald Trump

Photo: Jack Gruber - Pool/Getty Images

President Trump gave Republican senators a green light to explore ways to save money on Medicare during a meeting at the White House, senators said Thursday.

Why it matters: Changes to save money on Medicaid have already proven contentious with some Republicans. Medicare could open a new can of worms.

  • "The president is willing to eliminate any waste, fraud and abuse anywhere," Sen. Ron Johnson (R-Wisc.) told Axios about the White House meeting Wednesday night that he attended, "which opens up Medicare, as well," he added.
  • "What the president made clear is he does not want to see any cuts to beneficiaries, but to go after... the waste, fraud and abuse," said Sen. Steve Daines (R-Mont.), clarifying that Trump opened up Medicare as an option at the meeting.
  • Politico first reported on the Medicare discussions.

What to watch: One possibility being floated is a bill from Sen. Bill Cassidy (R-La.), which would get savings from the Medicare Advantage program.

  • The measure would crack down on an insurer practice known as "upcoding," where health insurers classify patients as sicker in order to secure higher government payments.
  • Cracking down on the practice has some support from Democrats as well, but would be sure to draw the opposition of the health insurance industry.
  • Johnson gave support for Cassidy's proposal, saying he thinks it would go after waste, fraud and abuse — and he thinks Trump would support it.

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Dems call for MA focus instead of Medicaid

Illustration of a microphone draped over the hook of an IV pole.

Illustration: Gabriella Turrisi/Axios

Congressional Democrats are calling for changes to Medicare Advantage as a way to get savings, rather than cutting Medicaid.

Why it matters: The move highlights the increased scrutiny on Medicare Advantage, even if this specific call is likely to go unheeded as Republicans write their tax bill.

What they're saying: "We urge you to reject cuts to Medicaid, which are deeply unpopular and will rip away health care from millions of Americans," the Democrats wrote in a letter to GOP leaders.

  • "Where there is widespread agreement is the need to address waste, fraud, and abuse by private, for-profit insurance companies," the letter adds.
  • The letter was led by Sens. Elizabeth Warren and Ron Wyden, as well as Reps. Lloyd Doggett and Jan Schakowsky.
  • It specifically calls for preventing "upcoding" by insurers in Medicare Advantage, where patients are categorized as sicker to secure higher payments from the government.

The intrigue: CMS Administrator Mehmet Oz called out the practice in his confirmation hearing, highlighting the broader scrutiny from some on both sides of the aisle.

Medicaid cut fight drags on even after Trump push

Photo illustration of President Donald Trump in profile with a pattern of plus symbols and dotted lines

Photo illustration: Sarah Grillo / Axios. Photo: Brendan Smialowski / AFP via Getty Images

President Trump sought to shut down the Medicaid debate and get the GOP megabill passed Tuesday, but House lawmakers continued to squabble over the extent of cuts to the program even after he spoke to the caucus.

Why it matters: Time is running short for Republicans to pass their bill this week, but hardline conservatives are still pushing for deeper Medicaid cuts as moderates warn they don't want further drastic changes to the bill.

  • The disputes could spill over into or even delay a House Rules meeting scheduled for 1am ET Wednesday.

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