What the 2025 Federal Budget Means for Medicare and Home Care Services

Your 1+1 Team
August 4, 2025

The latest updates to the 2025 federal budget Medicare cuts are flying under the radar, but they could deeply impact how our communities access health care, especially older adults and the people who care for them. Whether you're someone supporting aging parents, working in the caregiving space, or simply trying to stay informed, this budget matters.

It touches everything from Medicare eligibility to nursing home staffing and long-term care funding. And while there are a few small wins, there are also some concerning setbacks that deserve more attention.

Here's a breakdown of what you should know:

1. Medicare Could Face Major Cuts Over the Next Decade

If Congress doesn’t act, automatic reductions from the 2025 federal budget Medicare cuts could slash spending by nearly $500 billion between 2026 and 2034. These cuts would be triggered by a law that requires the government to offset any increases to the federal deficit. Since this year's budget adds over $3 trillion to the deficit, Medicare is on the chopping block.

This could mean fewer resources for provider reimbursements, delayed care, and even less access for patients who already struggle to navigate the system.

2. Medicare Access is Now More Limited for Immigrants

New restrictions narrow who qualifies for Medicare. Legal immigrants who previously could access Medicare after five years of continuous residency in the U.S. may now be excluded unless they fall under specific categories like U.S. citizens, green card holders, or certain humanitarian designations.

Even more alarming, people who currently receive Medicare but fall outside those categories could lose their coverage within the next 18 months. This kind of rollback risks leaving vulnerable populations without a safety net.

3. Long-Term Care Staffing Requirements Put on Hold

Earlier in the year, a federal rule was passed that would have required nursing homes to meet new minimum staffing levels. It was a long overdue move meant to improve conditions for both residents and staff.

However, this budget blocks enforcement of that rule until 2034. That means underpaid, overstretched nursing home workers won't see relief any time soon. Families with loved ones in these facilities are left wondering who is really looking out for them — especially in the shadow of the 2025 federal budget Medicare cuts.

4. Caregiver Support Is Still Being Overlooked

Despite caregiver burnout making national headlines, the 2025 federal budget Medicare cuts highlight how little institutional support is being prioritized for families providing unpaid care.

Unpaid caregivers continue to carry a massive emotional and financial burden with little institutional support. It's disappointing that their labor remains invisible in policy priorities.

5. Some Progress on Prescription Drug Transparency

One positive note is a new rule that limits how Pharmacy Benefit Managers (PBMs) can profit from prescription drug deals in Medicare Part D plans. Starting in 2028, PBMs will face stricter transparency rules around pricing and rebates.

It's a small but meaningful step toward accountability in drug pricing, which could ultimately benefit patients.

Why 2025 Federal Budget Medicare Cuts Matters

Budgets reflect values. And right now, the 2025 budget is sending a clear message about where care sits on the priority list.

We can't afford to be passive observers. Whether it's through supporting advocacy groups, contacting representatives, or just staying informed, there are ways to push for a care system that reflects dignity, equity, and compassion. Aging isn't a policy issue, it's a human one. And how we show up for our elders and our caregivers says everything about the kind of society we want to live in.

About 1+1 Cares

1+1 Cares is a referral agency that works for clients and caregivers. We match caregivers with clients and inform them of your requirements. We work for you so you and your loved one can have a safe, enjoyable caregiving experience.

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