The GOP proposed budget bill, which is titled the “One Big Beautiful Bill Act” (OBBBA), has a few provisions that would directly impact the quality life of retirees. Since many retirees rely on the various social programs that include Medicaid, Medicare, and Social Security, you might be surprised there are plans to change those programs in the bill.
These social programs were once considered the “third rail of politics,” that politicians were loathe to touch them because it amounted to political suicide, but it appears that fear has largely gone away.
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Here are the changes we might expect in the big beautiful bill:
Medicaid Work & Eligibility
The bill includes provisions to include mandatory work requirements for able-bodied adults. They would be required to have at least 80 hours of work, job training, or volunteering to remain eligible.
Eligibility checks would be done every six months, rather than annually, which could lead to a reduction of eligible individuals. These are all moves made to reduce the cost of Medicaid and the Congressional Budget Office estimates that 8.6 million people would lose coverage by 2034.
Medicare Changes
There are no direct changes to Medicare but there are existing rules that could indirectly affect retirees. One clear risk is that if the OBBBA increases the federal deficit, it could trigger spending cuts as mandated by the Statutory Pay-As-You-Go Act – thus effectively reducing benefits.
Social Security
Social Security is not directly affected but in a similar way, could be affected as the Department of Government Efficiency (DOGE) has continued to implement cost cutting steps at the Social Security Administration and that could impact service.
It is worth noting that the Republican Study Committee's 2025 budget plan had proposed a gradual increase in the full retirement age to 69 for those individuals turning 62 in 2033. Increasing the full retirement age has the same effect as reducing benefits, but this would only start taking place years in the future.
Supplemental Nutrition Assistance Program Cuts
Many retirees rely on Supplemental Nutrition Assistance Program (SNAP) benefits to help make ends meet when it comes to groceries – the bill looks to cut $300 billion in benefits over the next decades. To get benefits, there are work requirements on those who are without dependents ages 49 to 64. Additionally, states are not permitted to waive work requirements in areas with high employment.
5% of benefit costs and 75% of administrative costs would be passed onto the states from the federal level, which would put a greater burden on states and likely reduce benefits.
Affordable Housing
The bill also cuts $60 billion to health, housing, and community development programs on top of the $100 million in affordable housing contracts cancelled by the Department of Government Efficiency.
