House Budget Proposes ACA Repeal, Reduced Medicare Spending

March 17, 2016 - The House of Representatives proposed budget plan for 2017 from the House Budget Committee aims to repeal the Affordable Care Act (ACA), reduce Medicare spending, and give states more control with health programs.

“With respect to health care, the plan would repeal the Affordable Care Act; create and implement a ‘premium support’ Medicare model, allowing beneficiaries to remain in ‘traditional Medicare’ or transition to the new model; combine Medicare Parts A and B to create a single deductible for seniors; and make reforms to medical liability laws to curb frivolous lawsuits,’ reports AHA in a recent statement.

“A Balanced Budget for a Stronger America” plans to reduce Medicare spending by $449 billion along with $1.03 trillion in Medicaid and other healthcare spending. The budget plan was recently revealed by House Budget Committee Chairman, Tom Price (R-GA).

The plan hopes to balance the federal budget by reducing $7 trillion in deficit over the next 10 years. The reduction is a combination of $6.5 trillion in savings and economic growth. It also plans to reduce $30 billion in mandatory spending and reforms in the next term alone.

The authors intend to balance the budget by repealing ACA and cutting federal healthcare programs rather than increasing taxes.

“Understanding that America’s health care system is in need of reform, our budget envisions starting over with a set of policies that would provide for patient-centered health care reform,” a list of frequently asked questions (FAQs) states about the budget plan.

A core tenet of the budget is to empower citizens and committees. According to the budget, this is achieved in healthcare by repealing Obamacare, endorsing patient-centered healthcare to improve affordable and quality care, and securing Medicare for current and future beneficiaries.

To accomplish this, authors propose a premium-based support system for Medicare by 2024. Medicare beneficiaries would have the option to choose from an authorized lists of plans. The proposed changed is modelled on the Medicare Part D program.

“This budget saves and strengthens Medicare. The Medicare trustees predict that without reforms, Medicare will go bankrupt by 2030, breaking the promise to seniors,” the authors state. “Our plan would strengthen Medicare by offering future seniors guaranteed-coverage options – including traditional Medicare – regardless of pre-existing conditions or health history. All seniors will have the support they need to get the care they deserve.”

Another integral part of the House plan would repeal Medicaid expansion under the ACA and empower states and communities to innovate and improve health programs.

According to the plan, states would receive “State Flexibility Funds,” which are block grant programs that allow states to create programs for their communities.

The budget proposes to transition the Supplemental Nutrition Assistance Program, otherwise known as Food Stamps, to state control. Each state would create its own version by 2021.

“State legislators and governors know far better than Washington what their citizens need and how to offer it. States also know better than Washington how to track fraud and abuse in the program – and how to remedy it,” the proposal states.

Supporters of the budget claim that federal governments micromanage states through federal healthcare programs. States are constricted by “one-size-fit-all” programs, which neglect specific community needs.

Authors of the plan explain that when states are in control of programs, our healthcare system becomes more patient-centered.

Overall, the budget claims that essential programs, like Medicare, need to reduce spending and focus on patient-centered care to survive for future beneficiaries.

“This budget stops spending money we don’t have. It’s a plan that cuts $5.5 trillion in spending over the budget window, eliminates waste and inefficiencies, and proposes reforms to save and strengthen vital programs to ensure they are able to serve Americans today and in the future,” the authors state.

The House Budget Committee approved the plan on March 16, 2016.