HHS Secretary Alex Azar defended President Donald Trump's 2020 budget proposal calling for cuts to Medicare , stating during a March 12 budget hearing that the proposal places the program "on a sounder footing," PBS News reports.
Four things to know:
1. President Trump's proposed 2020 budget, released March 11, calls for steep cuts to hospital Medicare payments. PBS News reports the proposal calls for $845 billion in total spending reductions from Medicare over 10 years by cutting future payments to hospitals and other healthcare providers.
2. However, the Trump administration claims the budget cuts won't affect Medicare benefits for seniors seeking care. Instead, the proposal calls for the better use of taxpayer money to reduce Medicare spending by lowering prescription drug costs.
"[President Trump is] not cutting Medicare in this budget. What we are doing is putting forward reforms that lower drug prices, [and] because Medicare pays a very large share of drug prices in this country, it has the impact of finding savings," a White House budget official told PBS News.
3. The proposal, which mirrors President Trump's previous efforts to dismantle the ACA and cap Medicaid spending, has little public support and will face significant hurdles in a divided Congress, according to the report.
4. Medicare currently costs the government $650 billion annually and is expected to rise as the baby boomer generation heads into retirement. Mr. Azar acknowledged after the March 12 budget meeting that Congress cannot force states to abide by Medicaid spending limits, and that any budget proposal would need Congressional approval.
To access the full report, click here.