Yushield – Financial Safety Starts Here

The “One Big Beautiful Bill” (OBBB/OBBBA) was signed into law by President Trump on July 4, 2025, Independence Day. Here is how the OBBBA impacts Medicare and Medicaid, especially for seniors.

🏥 Medicare & Seniors

• No direct cuts to Medicare, but the bill blocks a regulation that would have expanded enrollment into Medicare Savings Programs (MSPs), which reduce Medicare premiums and out‑of‑pocket costs. As a result, about 1.3 million low‑income Medicare recipients may lose access to this cost relief, significantly increasing their healthcare expenses.
• The bill includes a $6,000 personal income tax deduction (or $12,000 for couples filing jointly) for individuals aged 65+ earning up to $75,000 ($150,000 couples), phasing out at higher incomes. This is not a tax-free on Social Security claim, but a general income deduction.
  • Low-income seniors, who already pay little or no tax on Social Security, will see minimal benefit.
  • Higher‑earning seniors get limited temporary relief, but it doesn’t fully eliminate taxes on Social Security income.
  • The deduction is scheduled to expire in 2028.

🩺 Medicaid & Long‑Term Care

• The OBBBA includes drastic Medicaid cuts – over $1 trillion trimmed by 2034 – potentially removing coverage for 10 – 14 million people, including seniors and people with disabilities.
• It introduces twice‑annual eligibility verification, which means more red tape – and can lead to unintentional disenrollment, especially affecting seniors and elderly persons in long‑term care.
• Allows states to impose co-pays (up to $35 per service) on Medicaid enrollees earning just above poverty lines, hitting seniors relying on Medicaid for nursing-home care or Home and Community Based Service (HCBS).
• Nursing homes and rural healthcare providers are at heightened risk of closure or reduced service due to funding cuts, decreasing access for seniors requiring long‑term care.

⏳ Timeline of Key Changes

• Medicaid cuts and work/cost requirements will begin rolling out as early as December 31, 2026, with other provisions taking effect by late 2027 – 2028.
• MSP enrollment barrier removes streamlined access immediately upon signature.

✅ Summary

Bottom line:

While seniors see a modest income tax deduction, the bill introduces substantial Medicaid restrictions and funding reductions, especially impacting the affordability and availability of Medicare-related support and long-term care services. Many low-income or elderly Americans could face significant cost burdens or lose coverage.