President Obama's proposal to cut $4 trillion from the nation's current $14-trillion deficit included "tough cuts" to Medicare and Medicaid, but largely preserves the programs, according to a CNN report.
Obama's position is markedly different from that of Republicans, who last week introduced their spending plan, which included a transfer of the Medicaid program into block grants for states and transitioning Medicare into a program that would provide payments to seniors for private insurance.
Although Obama protected the programs — saying "We are a better country because of these commitments," according to a Boston Globe report — his proposal include cuts to the programs that are estimated to save $340 billion over 10 years, according to CNN.
The savings would come from changes to the Medicaid federal matching rate, efforts to reduce prescription drug costs and costs associated with medical errors. The proposal will also give the Independent Payment Advisory Board more power to make recommendations to Congress and could give HHS the authority to make cuts if Congress fails to act.
Read more coverage on Medicare and Medicaid spending:
- President's Speech Today May Propose Medicare Payment Changes
- GOP Proposal Would Fundamentally Change Medicare, Medicaid
Obama's position is markedly different from that of Republicans, who last week introduced their spending plan, which included a transfer of the Medicaid program into block grants for states and transitioning Medicare into a program that would provide payments to seniors for private insurance.
Although Obama protected the programs — saying "We are a better country because of these commitments," according to a Boston Globe report — his proposal include cuts to the programs that are estimated to save $340 billion over 10 years, according to CNN.
The savings would come from changes to the Medicaid federal matching rate, efforts to reduce prescription drug costs and costs associated with medical errors. The proposal will also give the Independent Payment Advisory Board more power to make recommendations to Congress and could give HHS the authority to make cuts if Congress fails to act.
Read more coverage on Medicare and Medicaid spending:
- President's Speech Today May Propose Medicare Payment Changes
- GOP Proposal Would Fundamentally Change Medicare, Medicaid