Illustration: Annelise Capossela/Axios
The Senate parliamentarian has ruled that Republicans' proposed restrictions on the Medicaid provider tax violate the Byrd Rule, according to Senate Budget Democrats — dealing a huge blow to GOP plans for the megabill they're trying to pass.
Why it matters: The restrictions on the provider tax were a major source of savings for the GOP bill, and had been the subject of intense haggling over the extent of the limits.
Driving the news: Now it appears that the section may be thrown out for violating the rules of reconciliation, unless Republicans can come up with changes to satisfy the rules.
- Other provisions that violate the Byrd Rule include a provision lowering the federal share of Medicaid costs from 90% to 80% for states that cover undocumented immigrants with state funds.
- Cutting off Medicaid funding for gender-affirming care was also ruled to violate the budget rules.
- Other scrapped provisions include banning "spread pricing" by pharmacy benefit managers in Medicaid and restrictions on certain immigrants receiving ACA subsidies.
- Defunding certain abortion providers, including Planned Parenthood, is still under review, per Senate Budget Committee Democrats.
