Representative Greg Steube (R-FL) is teaming up with Senator Rand Paul (R-KY) to introduce a bill keeping illegal aliens from receiving Medicaid benefits.
Specifically, Rep. Steube's Excluding Illegal Aliens from Medicaid Act seeks to close loopholes present in current Medicaid provisions that several states, such as California, exploit to provide coverage for illegal aliens.
As the Economic Innovation Policy Center (EPIC) explained, California specifically tripled Medicaid-managed provider taxes beginning in 2023. Then, it used the tax revenue to pay for the capitation payments of those plans.
Thus, because the Federal government receives 60 cents for every dollar, California could use the leftover money to provide Medicaid to illegals.
The "One Big Beautiful Bill" helps close this loophole by forbidding tiered rates keyed to Medicaid volume and ordering states with non-compliant taxes to rectify them or risk losing federal funds. Additionally, Rep. Steube's bill further helps close this loophole.
"Medicaid should only be for American citizens, not those who intentionally break our laws. Several states are abusing loopholes in federal tax law to waste money on healthcare handouts for illegal aliens," the Florida Congressman said in his press release, adding, "Rewarding criminals with benefits paid for by law-abiding Americans is unfair, expensive, and flat-out wrong. That is why Senator Paul and I are fighting to keep Medicaid for Americans only."
Steube's bill comes on the heels of a similar piece of legislation involving Medicare introduced by his colleague, Representative Aaron Bean (R-FL), which requires the Centers for Medicare and Medicaid (CMS) to improve accuracy in listing costs and potential outcomes of healthcare policies, such as Medicare Advantage (MA) and Fee-For-Service (FFS).
As Rep. Bean explained, the difference in costs between Medicare Advantage and Fee-for-Service systems is not always clear, and with Medicare spending already reaching $1.3 trillion in 2025 alone, ensuring plans are presented accurately is critical.
