Over Half of House GOP’s Budget Plan Cuts Come from Health Care
March 13—A House Republican budget resolution for FY14 would cut about $4.6 trillion in government spending over the next 10 years, $2.7 trillion of which would come from cuts in healthcare spending.
Much of the $2.7 trillion in proposed healthcare spending reductions would be achieved by savings resulting from repealing the coverage provisions of the Affordable Care Act (ACA) while maintaining the ACA’s reductions.
The proposed plan recommends reforming the medical liability system; increasing means testing for Medicare Parts B and D; repealing the Independent Payment Advisory Board; and establishing a deficit-neutral reserve fund to address the Medicare sustainable growth rate issue.
Starting in 2024, the plan would transition Medicare to a premium support program, with workers under age 55 choosing between private plans and a traditional fee-for-service option through a new Medicare marketplace. The plan also would convert Medicaid into a block grant program and reduce federal Medicaid spending by $756 billion over 10 years.
Publication Date: Wednesday, March 13, 2013