House Republicans plan to use their midterm election gains to reverse the reform, but the senate is likely to block it.
For the large majority of US working class families who rely on Medicaid, a government medical programme for low-income Americans, the current debt talks are not helpful.
President Barack Obama says Medicaid is just one of the programmes that will face cuts as part of deal being made with Congress to reduce government spending and raise the country’s $14.3 trillion debt limit.
He called it a “a tough package”.
Kimberly Halkett reports from Washington.