House Budget Committee Chairman Tom Price (R-GA) on March 15 unveiled the committee’s budget plan for fiscal year 2017, which would reduce Medicare spending by $449 billion and Medicaid and other health care spending by $1.03 trillion over 10 years. Overall, the plan would achieve about $7 trillion in deficit reduction over 10 years – through a combination of $6.5 trillion in savings coupled with economic growth – to balance the federal budget.
In addition, the plan requires consideration of legislation this year to achieve at least $30 billion in mandatory spending reductions and reforms in the near term. With respect to health care, the plan would repeal the Affordable Care Act; create and implement a “premium support” Medicare model, allowing beneficiaries to remain in “traditional Medicare” or transition to the new model; combine Medicare Parts A and B to create a single deductible for seniors; and make reforms to medical liability laws to curb frivolous lawsuits.
In addition, the House proposal would repeal Medicaid expansion under the ACA and create a block grant program that gives states the option to tailor a program to their communities. The committee is scheduled to begin consideration of the plan on March 16.
[ via AHA News Now ]