Senate Majority Leader John Thune is scrambling to quell the Medicaid-fueled mutiny that’s threatening to derail the megabill on both sides of the Capitol. The situation is growing increasingly tense as key senators voice their concerns over the financial commitments and the proposed changes to the Medicaid program. Thune finds himself in a delicate position, trying to balance the demands of his party members with the need to push the legislation forward.
On the Senate floor, ‘Medicaid moderates’ are rejecting the Finance Committee’s opening offer of $15 billion for a stabilization fund for rural hospitals. These senators are looking for more substantial financial support, with some suggesting that even if the offer is increased to $100 billion, the issues with the bill would not be fully addressed. Thune has closed the door on the $100 billion figure, but the disagreement highlights the difficulty in reaching a consensus.
Multiple senators are threatening that they won’t vote to open floor debate on the megabill without more clarity on Medicaid changes. This includes Sen. Thom Tillis, who has warned that unless the Senate changes its course, North Carolina may not have a representative at the table next year. These concerns are not just from the Senate but also from the House, where wary moderates are similarly skeptical of the financial provisions of the proposal.
Speaker Mike Johnson is attempting to calm his members by suggesting that the Senate Medicaid language might align more closely with the House’s version. However, the House GOP leaders and moderates believe the provider tax rate could end up between 4 percent and 5 percent. While some within the House are willing to accept these terms, others are still protesting, indicating a lack of clarity in the negotiations.
Thune’s position appears to be shifting somewhat, as he has not completely ruled out the possibility of softening the provider-tax language. But the final decision will depend on what the financial implications can bear. The situation is fraught with uncertainty, and the outcome of these negotiations will have significant implications for the future of the megabill and the broader policy landscape.