The FY 2012 budget proposal to be released by House Republicans today would fundamentally change the Medicare and Medicaid programs, according to a report by the New York Times.
The proposal by Rep. Paul D. Ryan (R-Wis.), chairman of the House Budget Committee, would cut more than $5 trillion from projected federal spending in the next 10 years and much of it would come from healthcare.
Here are some points in advance of the release.
Medicare shifts to premium payments. Starting with people now under age 55, Medicare would stop being a claims administrator and instead contribute a specified amount toward the private health insurance premiums of beneficiaries. Payments would be tied to the overall inflation rate.
Medicaid becomes a block grant program. Federal Medicaid payments would be transformed into a block grant to states, giving states wide discretion to use the money to care for low-income people. The Congressional Budget Office recently estimated that such an arrangement could save $180 billion over 10 years.
What happens next. The GOP-led House proposal is expected to approve the proposal as a resolution. If passed by the Senate, the resolution would not become law but it would bind Congress in upcoming budget actions. However, the Democratic-controlled Senate is not expected to adopt the resolution. The Senate Budget Committee is trying to craft a bipartisan budget plan that would also address entitlement spending.
Relationship to FY 2011 budget. Congress has not yet passed a budget for FY 2011, instead opting for a series of stopgap resolutions to keep the government going. A budget proposal for the rest of FY 2011 is currently being debated, and if that fails to pass by this Friday, when the latest stopgap ends, the federal government would partially shut down.
Public opinion. A Wall Street Journal/NBC News poll in February showed that while the public is concerned about the federal budget deficit, 54 percent didn't think Medicare cuts were necessary in order to significantly cut the federal budget deficit and 76 percent opposed a list of specific Medicare cuts.
Read the New York Times report on Medicare and Medicaid spending.
Read more coverage of GOP plans to revamp Medicare and Medicaid:
- Proposed House GOP Budget Would Slow Medicare, Medicaid
- Medicaid Block Grants for States Would Impact Healthcare
- GOP Leaders Make Plans to Defund Reform, Cut Medicare, Medicaid
The proposal by Rep. Paul D. Ryan (R-Wis.), chairman of the House Budget Committee, would cut more than $5 trillion from projected federal spending in the next 10 years and much of it would come from healthcare.
Here are some points in advance of the release.
Medicare shifts to premium payments. Starting with people now under age 55, Medicare would stop being a claims administrator and instead contribute a specified amount toward the private health insurance premiums of beneficiaries. Payments would be tied to the overall inflation rate.
Medicaid becomes a block grant program. Federal Medicaid payments would be transformed into a block grant to states, giving states wide discretion to use the money to care for low-income people. The Congressional Budget Office recently estimated that such an arrangement could save $180 billion over 10 years.
What happens next. The GOP-led House proposal is expected to approve the proposal as a resolution. If passed by the Senate, the resolution would not become law but it would bind Congress in upcoming budget actions. However, the Democratic-controlled Senate is not expected to adopt the resolution. The Senate Budget Committee is trying to craft a bipartisan budget plan that would also address entitlement spending.
Relationship to FY 2011 budget. Congress has not yet passed a budget for FY 2011, instead opting for a series of stopgap resolutions to keep the government going. A budget proposal for the rest of FY 2011 is currently being debated, and if that fails to pass by this Friday, when the latest stopgap ends, the federal government would partially shut down.
Public opinion. A Wall Street Journal/NBC News poll in February showed that while the public is concerned about the federal budget deficit, 54 percent didn't think Medicare cuts were necessary in order to significantly cut the federal budget deficit and 76 percent opposed a list of specific Medicare cuts.
Read the New York Times report on Medicare and Medicaid spending.
Read more coverage of GOP plans to revamp Medicare and Medicaid:
- Proposed House GOP Budget Would Slow Medicare, Medicaid
- Medicaid Block Grants for States Would Impact Healthcare
- GOP Leaders Make Plans to Defund Reform, Cut Medicare, Medicaid