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Impacts of the Big Ugly Bill on Medicaid

Many analyses have been published to parse the effects of the Big Ugly Bill on Medicaid. A number of them differ due to the fact that they are all projections and are based on various assumptions. Also because they were prepared at different times and the text in HR1 kept changing to the very end. In this blog, we have attempted to assemble the most recent and authoritative sources.

BACKGROUND OF MEDICAID

What is Medicaid and who are the recipients? (1)

State & Federal taxpayer-funded health insurance

Covers a core set of benefits for recipients at no cost

Covers about 1 in 4 Nevadans; nearly half are children

Payer of last resort, making up about a quarter of Nevada’s insurance market

Largest source of federal funds for health care in the State (60/40)

800,000 Average number of people in Nevada covered

22% growth pre-COVID

54% Percentage of births covered by Nevada Medicaid; 1 in 2 births

75% Recipients served by Medicaid Managed Care Plans

40% Recipients who are children or youth (0-18)

11% Dually eligible for Medicare & Medicaid (85,897 individuals)

78% Recipients who live in Clark County

66% Percentage of adults enrolled in Medicaid who are employed

71% Nevadans enrolled in Medicaid who are people of color

57% Number of nursing facility residents covered by Medicaid

(1) Sources – State Legislature

https://www.leg.state.nv.us/Session/83rd2025/Exhibits/Assembly/HHS/AHHS70C.pdf

https://dhcfp.nv.gov/uploadedFiles/dhcfpnvgov/content/LegislativeSessions/2026-2027%20Budget%20Overview%20DHCFP_02272025.pdf

HR1 EFFECTS ON INDIVIDUALS

How many people will lose Medicaid coverage nationally? In Nevada? In Congressional District 4? (2) and (3)

Nationally

8,689,000

That translates into one in 10 people currently enrolled in the Medicaid program nationwide losing their coverage.

Nevada

116,000

Out of 787,384 statewide which is approximately15.6%

Clark County alone currently has 623,739 Medicaid recipients

Congressional District 4

30,000

Also about 15.6% (of approximately 192,000 recipients, calculated)

(2) Source – Nevada Office of Analytics

https://app.powerbigov.us/view?r=eyJrIjoiZThjMWU5Y2YtZDE4NC00MDM2LWJkMDctZTgzYjliZGIyMjE3IiwidCI6ImU0YTM0MGU2LWI4OWUtNGU2OC04ZWFhLTE1NDRkMjcwMzk4MCJ9

(3) Source – Manatt Health


https://shvs.org/resource/senate-passed-h-r-1-updated-estimates-on-impact-to-state-medicaid-coverage-and-expenditures-hospital-expenditures-including-impacts-by-congressional-district/


However, there are other estimates that differ such as this one cited in the Washington Post on July 10 although the CBO letter dates from a month before the signing of the bill:

Trump displays magical thinking. How can he enact the biggest spending cut in history and no one feel it? And, contrary to his claim that ‘Medicaid is left alone,’ the nonpartisan Congressional Budget Office estimated that new work requirements and other changes in the health care program for the poor will cause 7.8 million people to lose their coverage. CBO added that changes in the Affordable Care Act and a cutoff of aid to undocumented immigrants will mean a total of 11.8 million people will lose their health coverage under the law.” (4)

(4) Sources

https://www.washingtonpost.com/politics/2025/07/10/trump-democrats-tax-spending-bill-fact-checker

https://www.cbo.gov/system/files/2025-06/Wyden-Pallone-Neal_Letter_6-4-25.pdf

HR1 EFFECTS ON FINANCING

How much money is being taken away from Medicaid nationally? In Nevada? In CD4? (3)

Nationally

-$1,248,773,000,000 ($1.2 trillion)

Nevada

-$12,328,000 ($12.3 million)

CD4

The cited analysis does not include the specific amounts of the overall financing effects by Congressional District. However a prorated calculation based the changes in the number of recipients implies a reduction of about $3 million.

HR1 IMPACTS ON HOSPITALS

What are the impacts on hospitals’ Medicaid funding nationally? In Nevada? In CD4? (3)

These impacts will affect many of the rural hospitals like Mesa View.

Nationally

-$664,954,000 ($665 million)

Nevada

-$6,881,000 ($6.9 million)

CD4

-$2,874,000 ($2.9 million)

FURTHER INFORMATION

There is also a very detailed breakdown of the Medicaid cuts in this article from the NY Times:

https://www.nytimes.com/interactive/2025/06/30/upshot/senate-republican-megabill.html