House Republicans have revealed their proposed budget for 2016, which stands to have a powerful effect on the healthcare industry.
Here are 10 key points from the budget proposal for healthcare leaders to know.
1. The budget proposal slashes federal spending by $5.5 trillion over the next 10 years, and a significant amount of that total comes from repealing the Patient Protection and Affordable Care Act and overhauling Medicare and Medicaid.
2. House Budget Committee Chairman Tom Price (R-Ga.), who is rolling out the budget proposal, assumes repealing the PPACA will result in $2 trillion in savings over the next decade. "Obamacare is not working for America's families, doctors or employers," the budget states. "It is imperative that the president's healthcare law be repealed so that we can start over and make targeted, common sense reforms that will improve access to affordable healthcare choices."
3. Republicans are under pressure from conservative groups to uphold their promise of repealing the PPACA, according to The New York Times. Heritage Action, the political arm of the conservative Heritage Foundation, said "A throwaway line that the budget 'repeals Obamacare in its entirety' is not enough," according to the report.
4. The Independent Payment Advisory Board — the unelected 15-member agency created under the PPACA that is charged with achieving Medicare savings — is repealed under the proposed budget. The creation of the agency was one of the most controversial provisions of the PPACA, and major healthcare groups, including the American Medical Association, have publicly fought for its elimination.
5. Along with repealing Medicaid expansion under the PPACA, the budget proposal calls for transforming Medicaid into a block grant program, which the Budget Committee projects will result in $913 billion in savings over the next decade.
6. The budget proposal calls for transforming Medicare into a "premium support model." Under the new model, Medicare recipients would receive "premium support" to purchase private insurance off of an exchange for Medicare plans.
7. The budget proposal calls for the new Medicare model to be implemented no sooner than 2024. Over the next 10 years, the Budget Committee projects overhauling the Medicare system would lead to nearly $150 billion in savings.
8. Rep. Price is also projecting more than $1 trillion in cuts to other mandatory programs, such as food stamps.
9. On Tuesday, after the Republican's budget proposal was unveiled, President Barack Obama showed his disapproval of the plan in comments to reporters at the White House. "It's not a budget that reflects the future. It's not a budget that reflects growth. It's not a budget that is going to help ensure the middle-class families are able to maintain security and stability and that people who are trying to get into the middle class are going to have the rungs on the ladder to get into the middle class," he said, according to Politico.
10. Although Congressional budgets are largely advisory documents, "they represent the broadest statement of governing philosophy each year and set overall spending levels for the coming fiscal year," according to The Times.
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