News Summary
The One Big Beautiful Bill Act is poised to create substantial changes in the construction industry and healthcare coverage in the U.S. The new law extends tax benefits for contractors while enacting significant Medicaid cuts, including imposing new work requirements. This dual impact raises concerns among industry stakeholders about financial implications and necessary adaptations. Key discussions focus on potential amendments and the challenges faced by state Medicaid programs. As the act unfolds, vigilant navigation of these transformations will be crucial for affected parties.
Impact of the One Big Beautiful Bill Act on Health Coverage and the Construction Industry
On July 4, 2025, a sweeping piece of legislation known as the One Big Beautiful Bill Act (OBBBA) was signed into law, bringing about significant changes to both the health coverage landscape and the construction industry. The act includes substantial cuts to Medicaid, the largest in the program’s history, as well as extensions of several key provisions from the 2018 Tax Cuts and Jobs Act (TCJA), many of which were scheduled to expire in 2025.
Medicaid Cuts and New Work Requirements
The OBBBA represents approximately $1 trillion in cuts to Medicaid, resulting in new work requirements that will take effect on January 1, 2027. Under these requirements, individuals will need to work at least 80 hours per month to maintain their coverage. Many enrollees are expected to lose access to Medicaid due to the increased red tape involved in the application process, although certain groups may be exempt from these mandates.
Health and Human Services Department regulations will allow states to request temporary delays in implementing these new requirements, leaving room for some flexibility as state Medicaid systems prepare for the anticipated financial strain.
Impact on State Medicaid Systems
With the implementation of the OBBBA, state Medicaid systems are bracing themselves for significant financial pressure. The administrative burden associated with the new requirements is likely to complicate the already complex management of state Medicaid programs. Polling data indicates that 65% of Medicaid recipients under 65 believe the new law will have a detrimental effect on their families.
In particular, six states are identified as particularly vulnerable to these cuts: Kentucky, Mississippi, Missouri, New Mexico, South Carolina, and West Virginia. As states adapt to the new landscape shaped by the OBBBA, Medicaid insurers like Centene and Molina Healthcare are adjusting their earnings expectations for 2025, anticipating slower growth rates.
Implications for the Construction Industry
From a construction industry perspective, the OBBBA not only reforms health care policies but also introduces important changes in tax policy. The act extends key provisions from the TCJA that were set to expire, impacting contractors’ tax planning strategies and cash flow management. A forthcoming presentation by CBIZ will address the implications of these extended tax provisions, featuring notable speakers including Joseph Natarelli, Barry Fischman, Marty McCarthy, Daniel Mauriello, and Steve Cerruto.
Congressional Efforts and Future Outlook
In response to the sweeping changes brought about by the OBBBA, there are ongoing efforts in Congress to amend certain aspects of the bill, particularly those affecting Medicaid funding and provider taxes. A new piece of legislation introduced by Missouri Senator Josh Hawley aims to repeal parts of the OBBBA that restrict state authority to levy taxes on health care providers. This initiative is supported by the Federation of American Hospitals, which stresses the critical role of provider taxes and directed payments for maintaining essential health care services.
While there is hope for legislative changes, experts predict minimal immediate relief for state Medicaid programs facing considerable budget constraints due to the measures in the OBBBA. Overall sentiment suggests that larger issues may manifest within the health care systems before any potential relief measures materialize.
As the OBBBA begins to reshape both the health coverage landscape and the dynamics of the construction industry, stakeholders from various sectors will need to remain vigilant in adapting to the ongoing impact of this landmark legislation.
Deeper Dive: News & Info About This Topic
Additional Resources
- NBC News: Trump’s Big Beautiful Bill
- Wikipedia: Medicaid
- Bloomberg: Trump’s Big Beautiful Car Loan Interest Deduction
- Google Search: One Big Beautiful Bill Act
- The Hill: States Scramble Medicaid Cuts
- Encyclopedia Britannica: Health Care
- Politico: Trump Lobbying 2025 Trade
- Google News: Healthcare Reform
- Alabama Reporter: The One Big Beautiful Bill Delivers for Alabama
- Google Scholar: Tax Policy Changes
- Thomson Reuters: Impact of the One Big Beautiful Bill Act
- Google Search: Construction Industry Tax Policy
