Under the debt reduction plan, also known as the Budget Control Act, the committee 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 across-the-board automatic cuts, including a 2 percent cut in Medicare payments.
Republic Governors Robert F. McDonnell (Va.), Chris Christie (N.J.), Haley Barbour (Miss.) and Mitch Daniels (Ind.) argued that states, if given flexibility from the federal government, can save Medicaid dollars.
“Governors are opposed, however, to cost shifting as a way for the federal government to
reduce Medicaid spending,” they wrote. “Going to a new ‘blended rate’ for [federal medical assistance percentages] and reducing provider fees collected by states are unfair cost-shifting measures that increase the burden to states. We are willing to do our share to save federal Medicaid dollars, but let us do it in a way that will reduce state taxpayer cost, too.”
Related Articles on Debt Reduction:
Debt Reduction Committee Receives More Than 175k Recommendations So Far; Gang of Six Plan Reconsidered
Senate Finance Republicans Submit Recommendations for Medicare, Medicaid to Debt Reduction Committee
Will Healthcare Reform Survive Debt Ceiling Legislation?
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