The White House has released the federal budget proposal for 2021 on Monday, and it looks like a full of President Trump’s wishlist. His administration wants to cut billions of dollars in federal support from food stamps, Medicaid, and other safety programs intended for the betterment of the poor. Medicaid primarily benefits senior citizens. The proposal is of 4.8 trillion dollars, and few of them are expected to be passed even in the House of Representatives, which has Democrats as the majority.
Trump spoke to the nation’s governors at a White House event that he would preserve entitlement programs. He further added - “We are not touching Medicare. We want to keep Medicare and Social Security. We are not decreasing Medicaid. But we are doing a lot of very good things, including waste and fraud.” However, the reality looks a bit different than what Trump claims to be. Here are the changes proposed by Trump:
Several changes were introduced in Medicare, which will largely affect hospitals and their doctors. Speaking to CNN, March Goldwein, senior policy director for the Committee for a Responsible Federal Budget, said - “The total decrease in federal spending on Medicare will amount to a total of about $750 billion in over ten years, which includes shifting of two programs out of the budget. After removing those changes, the reduction is just over $500 billion.” A large percentage of that cuts comes from reducing payments to providers.
The proposed budget calls for 844 billion dollars in savings over ten years from the President’s health reform vision. This is done by eliminating the enhanced federal match for Medicaid expansion enrollees. The administration proposed significant cuts in Medicaid, health care, and other assistance programs and estimates it would save more than $152 billion in a decade from implementing work requirements in Medicaid. Aviva Aron-Dine, Vice President for health policy of Budget and Policy Priorities, said - “a total of 1 trillion dollars in cuts are going to be done for Medicaid and the Affordable Care act.”
Other areas include saving approximately $182 billion by reforming the food stamps, which was formally known as the Supplemental Nutrition Assistance Program (SNAP).
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