In The News

Senate Dems call for repealing Medicaid “sick tax”

Jul 29, 2025

Welch at a June Judiciary Committee hearing. Photo: Anna Moneymaker / Getty Images

Sens. Peter Welch and Ron Wyden introduced legislation Monday that would repeal targeted provisions dealing with Medicaid and orphan-drug exemptions in the GOP tax-and-spending law. 

Why it matters: The bill has virtually no chance of passage in this Congress but adds to Democrats’ intensifying efforts to surface health care concerns sparked by the reconciliation package. 

  • It also shows how some senators are fine-tuning talking points before the August recess. 

What’s inside: The legislation would repeal what critics call the “sick tax” in the law that requires copays for Medicaid doctor visits. 

  • It would also repeal an expanded exemption from Medicare drug price negotiations for orphan drugs that treat two or more rare diseases or conditions.

What they’re saying: “Republicans did this knowing that they’d be pushing health care further out of reach for hardworking families while giving Big Pharma another handout,” Welch said in a statement. 

  • “We must right this wrong. Our bill repeals Trump’s cruel ‘sick tax’ to ensure everyone can get the care they need.”

Between the lines: Welch has been positioning himself as a leader on health care issues legislation as a member of the Finance and Judiciary committees. 

  • He scheduled a Tuesday afternoon press conference on the Hill with patient advocates and Protect Our Care to promote the bill.

Story Written by Victoria Knight, Axios

Story Link: https://www.axios.com/pro/health-care-policy/2025/07/29/dems-new-bill-repeal-sick-tax