Im not saying you need to have read the bill, but there’s plenty of information about how the cuts are structured.
It’s still pretty complicated, but I have a good grasp on the major components.
Medicaid provider tax rates are being capped at 3.5% for states who expanded Medicaid to 138% poverty level based on the ACA. They cap at 6% for states that didn’t.
So this provision and change doesn’t actually have anything to do with illegal aliens.
The part that has to do with illegal aliens changes how Medicaid reimburses for expansion states, when it lowers the FMAP from 90% to 80% for ACA expansion enrollees.
To put it another more broadly, the OBBBA cuts federal payments that pay for citizens healthcare to get states to do what they want with their own money.