Senate GOP Leader Thune: First Reconciliation Vote Expected Thursday, Package Progressing Rapidly.

Senate GOP Leader Thune: First Reconciliation Vote Expected Thursday, Package Progressing Rapidly.

Senate Majority Leader John Thune (R-S.Dak.) has announced that the first vote on the reconciliation bill is expected to take place on Thursday, June 20, 2025. The bill, which aims to address healthcare and fiscal issues, is progressing rapidly through the Senate.

The reconciliation package, released by the Senate Finance Committee, includes significant changes from the House’s “One Big Beautiful Bill” passed on May 22. Notable differences include adjustments to Medicaid provider taxes, limits on Medicaid state-directed payments (SDPs), and modifications to Medicaid work requirements [1].

The Senate bill maintains many of the core provisions of the House bill but introduces new elements. For instance, it proposes lowering the permissible "safe harbor" cap on Medicaid provider taxes from 6% of patient revenue to 3.5% by 2031, with annual reductions beginning in 2027. Additionally, it limits grandfathering to SDPs approved by May 1, 2025, and requires non-compliant SDPs to have their rates reduced by 10 percentage points annually until meeting the new limits [1].

The reconciliation bill also addresses Medicaid work requirements, limiting exemptions to individuals with dependents aged 14 or younger. It allows states to delay implementation until 2029 if they demonstrate a good faith effort and progress towards implementing these requirements [1].

The narrow GOP Senate majority of 53 seats leaves little room for disagreement, and the bill will require reconsideration by the House. The House passed its version with a narrow vote of 215-214, leaving little room for compromise [1].

The bill’s passage is being closely watched, as it could significantly impact healthcare financing and policy. The Senate’s rapid progress on the reconciliation bill indicates a push to enact legislation before the July 4 holiday recess. However, delays are possible, and the White House has softened its messaging around the deadline for final passage [1].

References:
[1] https://www.mhalink.org/mondayreport/senate-reconciliation-debate-this-week/