How Much Does New Budget Cut from Medicaid and Medicare?

President Donald Trump’s proposed fiscal year 2021 budget projects that taxpayers would save $920 billion for Medicaid and $756 billion for Medicare over 10 years. However, there’s a catch: All the policies it proposes need to be implemented to achieve those savings. Many of those policies, however, are either tied up in court or facing other opposition.

How Much Does New Budget Cut from Medicaid and Medicare? In President Trump’s proposed fiscal year 2021 budget, the HHS budget notes that taxpayers could save $756 billion in Medicare through 2030 by reducing fraud and waste and relying on lower payments to hospitals through “site-neutral” payment policies. For Medicaid, the Health and Human Services Department’s annual budget proposal presumes that expanded work requirements, tighter beneficiary eligibility screening and capped or “block grant” state funding will all be in effect.

These approaches show how the White House will change entitlement programs in an election year, if Trump’s budget is approved. His administration would like to see able-bodied adults who enroll in Medicaid to have a work requirement imposed. If this requirement was implemented, it would probably decrease the population of recipients and more of those receiving benefits would be physically unable to work.

“As part of the President’s Health Reform Vision, Medicaid spending will grow at a more sustainable rate by ending the financial bias that currently favors able-bodied working adults over the truly vulnerable,” the HHS budget document said.

The Centers for Medicare & Medicaid Services (CMS) has okayed 11 state work requirement programs and is in the process of looking at nine others. These state work mandates are being challenged in court, but the administration still contends they’ll save Medicaid $8 billion in 2021 alone.

CMS would like to implement Medicare’s “site-neutral” payment policy. This would pay the same lower rate for services whether provided at a doctor’s office or in a hospital outpatient setting. It’s a priority to see it go into effect. However, a federal court scrapped the policy last year, saying it was a programmatic overreach. Nonetheless, the Trump administration again implemented it this year and is facing more lawsuits from the hospital industry. The Trump White House says the site-neutral Medicare payments would save more than $164 billion over 10 years.

The administration also wants to cut Medicare payments for doctors’ residency training programs and hospitals’ uncompensated care. Those moves would save about $52 billion and $88 billion, respectively, over 10 years, the budget document explains.

The administration also estimates that overhauling Medicare payments for care after a patient leaves the hospital would save more than $101 billion over the next 10 years, answering the question How Much the New Budget Cuts from Medicaid and Medicare?

Reference: Bloomberg Law (Feb. 11, 2020) “Trump Projects Saving Billions From Medicare, Medicaid Policies”

Read more related articles at: Trump 2020 Budget proposes reduced Medicare and Medicaid- cncb.com

 Is President Trump Really Proposing To Cut Medicare By $845 Billion?- Forbes

Also check out our previous Blog:

                                                              Thinking about Aging? Will You Need Long Term Care with Medicaid?

 

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