Protecting Health Care and Lowering Costs Act of 2026

This bill would repeal several Medicaid provisions previously established under the One Big Beautiful Bill Act. Specifically, it proposes to eliminate requirements for the Medicaid expansion population to participate in work or community service activities to maintain eligibility. Additionally, the bill would remove certain restrictions on federal payments for Medicaid and CHIP services based on residency and citizenship status, as well as lift upcoming limits on Medicaid provider taxes.

This bill affects individuals in the Medicaid expansion population who are currently subject to community service or work requirements. It also impacts Medicaid and CHIP recipients by limiting federal payments for services to U.S. citizens, lawful permanent residents, Cuban-Haitian entrants, and Compact of Free Association migrants. Additionally, the legislation affects healthcare providers subject to Medicaid provider taxes and state agencies responsible for administering Medicaid and CHIP programs.

• Repeal of Medicaid work and community service requirements. The bill eliminates provisions from the One Big Beautiful Bill Act that required Medicaid expansion population members to participate in work, community service, or other specific activities to maintain eligibility.
• Removal of citizenship and residency restrictions for Medicaid and CHIP. The legislation repeals upcoming restrictions scheduled for FY2027 that would have limited federal payments for Medicaid and CHIP to specific categories of U.S. citizens and lawful residents.
• Repeal of Medicaid provider tax limitations. The bill removes provisions that were set to place general limits on Medicaid provider taxes starting in FY2027.

The bill addresses provisions scheduled to take effect beginning in FY2027, specifically regarding federal payment restrictions for Medicaid and CHIP services and limitations on Medicaid provider taxes.

This bill repeals Medicaid-related provisions previously enacted under the One Big Beautiful Bill Act, specifically reversing mandates for community service or work requirements for the expansion population. It also removes restrictions on federal payments for Medicaid and CHIP based on specific residency and citizenship statuses and eliminates certain limits on Medicaid provider taxes.

The bill seeks to repeal specific Medicaid provisions enacted under the One Big Beautiful Bill Act, including requirements for Medicaid expansion populations to engage in work or community service and restrictions on federal payments for services based on residency and citizenship status. Additionally, the legislation aims to remove upcoming limits on Medicaid provider taxes and restore previous standards for federal funding and eligibility.