Aa
Aa
A
A
A
Close
Avatar universal

GOP Plan Would Cut Medicaid by $1.7

GOP Plan Would Cut Medicaid by $1.7 Trillion, Study Says

Phil Galewitz
Oct 24, 2012

The House Republican plan to repeal President Barack Obama's health law and turn Medicaid into a block grant program would save the federal government $1.7 trillion from 2013 to 2022, a 38-percent spending reduction, according to a report today by the Urban Institute for the Kaiser Family Foundation.

It would also result in 31 million to 38 million fewer people getting Medicaid coverage in 2022, according to the report. The entitlement program, which is jointly financed by the state and federal governments, now provides health coverage to about 62 million poor people, about half of whom are children.

The block grant idea – paying a fixed sum to states — was formulated by Rep. Paul Ryan, Mitt Romney’s vice presidential running mate and chair of the House Budget committee, and passed by the Republican-controlled House of Representatives in 2011 and 2012. The strategy is part of the GOP plan to cut the nation’s $1 trillion federal deficit.

Romney backs a similar Medicaid block grant strategy that would cut $100 billion a year from Medicaid starting in 2013. Under Romney’s plan, federal payments to the states for Medicaid would grow at 1 percentage point a year above the Consumer Price Index. That would slow funding increases, but give states greater freedom in how they use the money, including the ability to cut eligibility or benefits to meet their budget needs. Today, the federal government sets minimum rules and guidelines and must approve any major changes to the program.

The Urban Institute analysis, which updates an analysis originally done in May 2011,  said the House block grant plan would cut funding to hospitals by as much as $363.8 billion, and payments to nursing homes by $22.2 billion.

Of the $1.7 trillion cut to Medicaid spending, $932 billion of the reductions come from repealing the Medicaid expansion in Obama’s health law and $810 billion is a result of spending cuts that are part of the block grant.

Under the health law, Medicaid would expand to cover as many as 17 million more people starting in 2014. States have the option to decide whether to expand eligibility, and several Republican-led states including Florida and Texas say they can’t afford the expansion.

http://www.medscape.com/viewarticle/773223
4 Responses
Sort by: Helpful Oldest Newest
Avatar universal
I have no problem with gleaning the waste and fraud out of the system, I mean lets face it, there are some who have found the loopholes. It may be a good start to enforce the rules on the books already? As I said before, we can gut the programs that help people, but don't dare talk about ending them bush tax cuts for the ubers. We gotta pay for em somehow don't we?
Helpful - 0
Avatar universal
Thank you desrt.
El, you are young, healthy and employed. You will not always be. If you are smart, you will prepare for retirement or health catastrophes, but there is no guarantee you will be saved by your safety net.
You pay taxes, you are part of America and you contribute to your nation. When the time comes that you stand alone, ill and helpless are you just going to lie down and die?
Where is your humanity man?
Helpful - 0
148588 tn?1465778809
"And the problem with this plan is...?"

All those sick poor people.
Not all of them may be willing to go quietly.
Helpful - 0
1310633 tn?1430224091
EXCELLENT!

Gotta start cutting the budget somewhere, so I'm ALL for this. Cut Medicaid by $100B/yr, starting next year, all the way through 2022.

And the problem with this plan is...?
Helpful - 0
You must join this user group in order to participate in this discussion.

You are reading content posted in the Current Events . . . Group

Didn't find the answer you were looking for?
Ask a question
Popular Resources
A list of national and international resources and hotlines to help connect you to needed health and medical services.
Herpes sores blister, then burst, scab and heal.
Herpes spreads by oral, vaginal and anal sex.
STIs are the most common cause of genital sores.
Condoms are the most effective way to prevent HIV and STDs.
PrEP is used by people with high risk to prevent HIV infection.