Analysts at equity research firm Oppenheimer say they believe a debt-ceiling agreement could be reached by Aug. 2, and they expect a final deal to include up to $150 billion in cuts to federal health programs over the next 10 years.
Analysts foresee health cuts in debt deal
“We expect that tax increases in the form of closed loopholes and scaled-back subsidies to ethanol and oil companies will be exchanged for attenuated total cuts to federal health programs of roughly $100 billion to $150 billion over the next decade,” lead analyst Michael Wiederhorn and analysts Matt Nirenberg and Kinjal Bhatt wrote in a research note on Friday.
The analysts also predict that the Medicaid maintenance-of-effort provision—introduced in the American Recovery and Reinvestment Act of 2009 and expanded in last year's health law—will be repealed as an attachment to the resolution. Republican leaders in Congress introduced legislation earlier this year to repeal the MOE provision.
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