Congress Returns: Medicaid Cuts Take Center Stage

Published in Government Relations on April 29, 2025

By Ike Isaacson 

Congress is back in session after a two-week recess. Number one on the docket is figuring out the budget. The house is tasked with coming up with a $1.5 trillion reduction and a key committee is in the spotlight. 

Keep an eye on the House Energy And Commerce Committee, chaired by Rep. Guthrie (R-KY). This committee is tasked with finding $880 billion of the total budget cuts and they are taking a long hard look at Medicaid. These discussions, that could start as early as next week, will be a harbinger of what the committee is thinking when it comes to Medicaid and what it means to the beneficiaries of those services. While Chairman Guthrie has said that cuts can be made without impacting services, the number of cuts will be the telling story. 

A couple of things to look for: 

  • Changes in work requirements. 
  • Reductions in the federal match money to states. 

House Speaker Mike Johnson is pushing lawmakers in the House to have the budget ready for President Donald Trump by Memorial Day. However, given the publicity that potential Medicaid cuts have generated, it may be well beyond that date before a package is ready.  Regardless of the timing, this is a topic that you will want to stay up to date on.  

While these discussions are happening at the federal level, it’s also important to keep your attention on your state government. Many states are having similar Medicaid discussions and are keeping a close eye on what the people in Washington, D.C., are doing. Remember, politics is local, so stay connected with your state and federal law makers on a regular basis.   

VGM Government Relations will continue to monitor and report as things roll out. If you have any questions, please contact us here at VGM. 

From Our Experts

Introducing Patient Voices: Access to HME Matters thumbnail Introducing Patient Voices: Access to HME Matters The VGM Government Relations team is excited to announce Patient Voices: Access to HME Matters, a new way for patients, providers, vendors, caregivers, and industry partners to share their experiences with home medical equipment. Every story matters. AAHomecare Survey Results of RID Program thumbnail AAHomecare Survey Results of RID Program Thank you to AAHomecare for initiating this important survey demonstrating the significant risks to the DMEPOS industry should Remote Item Delivery Competitive Bid Program (RID CBP) Round 2028 move forward as is. VGM Group is proud to support the survey efforts to maximize provider participation. See below for the survey summary and analysis. Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories thumbnail Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories Per the Remote Item Delivery Competitive Bidding Program (RID CBP) Round 2028 requirements, bidders must meet all business and product category licensure requirements across every state, the District of Columbia, and the U.S. territories to be eligible to be a contract winner. New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items thumbnail New CMS Nationwide Probationary Prior Authorization Requirement for Newly Enrolled Suppliers of Certain DMEPOS Items On Sept. 2, 2026, CMS introduced the Probationary Prior Authorization (PPA) program that will place newly enrolled DMEPOS Suppliers and those undergoing 100% change in ownership on a one-year probationary period. Effective Oct. 15, impacted suppliers will be required to submit a prior authorization request for specific HCPCS codes. OIG Report Signals Increased Fraud Oversight for DMEPOS Suppliers thumbnail OIG Report Signals Increased Fraud Oversight for DMEPOS Suppliers The HHS Office of Inspector General (OIG) recently released a white paper examining ongoing Medicare fraud involving durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). Preparing for Increased Audit Activity: How VGM Group and The van Halem Group Can Help thumbnail Preparing for Increased Audit Activity: How VGM Group and The van Halem Group Can Help The recent HHS Office of Inspector General (OIG) report on DMEPOS fraud signals that CMS is likely to increase oversight activities across the industry. The report calls for enhanced supplier enrollment screening, more aggressive medical reviews, expanded use of artificial intelligence and data analytics, greater physician order verification, and increased scrutiny of supplier ownership and billing practices. CMS Releases Critical Updates On The Medicare Supplier Enrollment Moratorium And Round 2028 Competitive Bidding Program thumbnail CMS Releases Critical Updates On The Medicare Supplier Enrollment Moratorium And Round 2028 Competitive Bidding Program See CMS' notice on the Medicare Supplier Enrollment Moratorium below: Medicare's DMEPOS Supplier Enrollment Moratorium Has Expired | Action Required for Round 2028 Bidders This message is to inform you that the 6-month temporary moratorium on accepting Medicare supplier enrollment applications, which became effective on February 27, 2026, has now expired as of August 27, 2026. CMS Updates CBIC Website Bid Preparation Guidance for Round 2028 Competitive Bidding Program thumbnail CMS Updates CBIC Website Bid Preparation Guidance for Round 2028 Competitive Bidding Program On August 13, 2026, CMS posted several updated and new Fact Sheets and one new FAQ to the Bid Preparation Phase page on the CBIC website. Providers interested in submitting a bid for Round 2028 can find more program details, including the estimated number of contract awards, for each category.