Originally appeared in the Statesboro Herald.
By Congressman Rick W. Allen
In my previous letter to the editor, I corrected the record on two of the most egregious myths about the One Big Beautiful Bill (OBBB). Allow me to continue. What some folks call the “drastic consequences,” of this legislation, I call common sense policymaking to ensure that programs intended for our most vulnerable communities are sustained and protected.
For instance. Claims that Congress has kicked millions of people off their healthcare is blatant misinformation peddling. Don’t fall for this. If you think there isn’t waste, fraud, and abuse in Medicaid – you need to check your sources. Some will say this doesn’t exist, but from 2018-2023, annual Medicaid spending ballooned at twice the rate of inflation. Why? Keep reading.
The Congressional Budget Office (CBO) estimates there are 4.8 million able-bodied adults on Medicaid who choose not to work, 1.6 million duplicative and deceased enrollees that will be removed from the Medicaid rolls under the OBBB, and 1.3 million people who are ineligible for Medicaid, but states are unable to remove them from the rolls due to burdensome Biden-Harris era restrictions. Additionally, CBO has confirmed that, overall, states will save money from the elimination of wasteful mandates, which means more money will be available to reinvest in our traditional Medicaid population.
In strengthening the integrity of Medicaid by eliminating waste, fraud, and abuse, its resources can be refocused on providing better care for those whom the program was designed to serve: pregnant women, children, people with disabilities, low-income seniors, and other vulnerable low-income families. This is common sense.
Regarding rural hospitals, they comprise just 7% of all hospital spending on Medicaid, illustrating that they have not benefited from the massive increase in waste, fraud, and abuse under the Biden Administration. The OBBB provides a record $50 billion in new funding going to rural hospitals, while also eliminating financing loopholes that risked the long-term sustainability of the Medicaid program. For years, states and providers have relied on tactics like provider taxes and state directed payments to draw down excessive federal funds to pay for other non-Medicaid state expenses. President Biden allowed these abuses to explode over the last four years, setting Medicaid on an unsustainable path. The OBBB fixes these abuses.
Lastly, and as I’ve stated before: this bill is not a tax break for billionaires. It is an extension of the tax cuts that were signed into law in 2017, which led to the best economy in my lifetime. In other words, this bill prevents your taxes from going up. We are all rightfully concerned about the deficit. But those clamoring about this bill’s contribution to the deficit refuse to acknowledge the economic growth that competitive tax rates create. For example, a new study from the Council of Economic Advisers (CEA) confirms that by extending the 2017 tax cuts, we will see a boosted level of short-run real GDP by 3.3 to 3.8 percent and long-run real GDP by 2.6 to 3.2 percent. Annual real wages will rise by $2,100 to $3,300 per worker. Real annual take-home pay for a median-income household with two children will increase by roughly $4,000 to $5,000. The extension also facilitates $100 billion of investment in distressed communities through Opportunity Zones.
Needless to say, President Trump’s pro-growth economic formula will reduce the deficit, increase wages, deliver American jobs, and drive down the cost of living.
And one more thing. Medicare has not been touched in this bill— absolutely nothing in the bill reduces spending on Medicare benefits. I will continue to proudly tout the accomplishments in the One Big Beautiful Bill.
