Senate Finance Republicans Submit Recommendations for Medicare, Medicaid to Debt Reduction Committee

A group of Republican members of the Senate Finance Committee has submitted recommendations for Medicare and Medicaid cuts to the Joint Select Committee on Deficit Reduction.

The recommendations were submitted by Finance Committee Ranking Member Orrin Hatch (R-Utah), and Senators Chuck Grassley (R-Iowa), Mike Crapo (R-Idaho), Pat Roberts (R-Kan.), Mike Enzi (R-Wyo.), John Cornyn (R-Texas), John Thune (R-S.D.), Tom Coburn (R-Okla.) and Richard Burr (R-N.C.).

Among their recommendations, the senators suggest a full repeal of the Patient Protection and Affordable Care Act. They also recommend the following changes to the Medicare and Medicaid programs:

Medicare
• Address the eligibility age.
• Evaluate the impact of supplemental coverage.
• Establish a uniform deductible covering Medicare Part A and Medicare Part B services.
• Strengthen efforts against fraud, waste and abuse.

Medicaid
• Implement fiscal responsibility by giving states defined budgets.
• Empower states by giving states flexibility to:
o Modernize eligibility determination
o Develop and implement provider reimbursement systems that encourage value over volume of services
o Design benefits that comport with private-sector coverage, encourage healthy beneficiary behavior and better manage chronic disease
o Provide long-term care benefits with approaches that promote cost-effectiveness and self-directed services
o Partner with the federal government in providing more coordinated care for beneficiaries eligible for both Medicare and Medicaid.

Under the Budget Control Act, the Joint Select Committee on Deficit Reduction is charged with finding $1.2-1.5 trillion in savings by Thanksgiving. Failure to submit the recommended savings or failure by Congress to enact the recommendations by that time will result in automatic cuts, including a 2 percent cut in Medicare payments.

Related Articles on Debt Reduction:

Will Healthcare Reform Survive Debt Ceiling Legislation?
AHA: Obama's Deficit Plan Will Cost 200k Jobs; Hospital Operator Shares Drop
President Obama's Debt Reduction Proposal Includes $320B in Healthcare Savings

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