Commentary
Republicans in Congress are moving along with their “big, beautiful bill” to extend tax cuts, create some new tax provisions, and reduce the rate of growth in some spending programs. The Medicaid “cuts” that reduce the rate of growth in future spending have attracted particular attention. Here, I want to focus on what Congress could do with Medicaid and premium subsidies for exchange policies for low-income Americans. A bigger package could align incentives better and cut spending growth just as much, while also undercutting some of the claims being made against the current version of the bill.
