May 23, 2025

CBO Warns: New House Budget Proposal Could Slash Medicare by $490 Billion

A new report from the nonpartisan Congressional Budget Office (CBO) has sounded the alarm: the budget recently passed by the U.S. House of Representatives could result in nearly $500 billion in automatic Medicare cuts over the next ten years.

The bill would add $2 trillion to the federal deficit, triggering automatic cuts under existing budget rules. Beginning in 2027, these cuts would slash Medicare payments by 4 percent each year — affecting hospitals, doctors, Medicare Advantage plans, and prescription drug plans.

“This bill is not just a broken promise — it’s a betrayal,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans. “Older Americans worked a lifetime to earn their Medicare
benefits, and this legislation puts those benefits at risk while handing out tax breaks to the wealthiest.”

This was originally published in the May 23, 2025 edition of the Friday Alert. Read the full length version and see other Friday Alert editions here.