Rep. Ryan's Budget Proposal Repeals Reform Law, Cuts More Than $2T in Healthcare Spending

Yesterday, House Budget Committee Chairman Paul Ryan (R-Wis.) released a budget resolution for fiscal year 2013 that would repeal the Patient Protection and Affordable Care Act and cut healthcare spending by approximately $2.5 trillion over the next 10 years — nearly half of the proposal's $5.3 trillion cuts in total government spending in the same time period, according to an AHA News Now report.

Under Rep. Ryan's proposal, the Ways and Means Committee would be expected to look at Medicare provider cuts as one way to meet its goal of $53 billion in savings over 10 years. The resolution would also keep the Budget Control Act's Medicare sequestration cuts of approximately $6 billion over 10 years and the $500 billion in Medicare cuts included in the health law, although the proposal rejects other provisions of the law.

Beginning in 2023, Medicare would move to a premium support program in which employees under age 55 could choose between private plans and a traditional fee-for-service option. The federal government's contribution to Medicare would be determined by a competitive bidding process, with the per capita cost of the program capped at gross domestic product growth plus 0.5 percent. In addition, the Medicare retirement age would increase by two months each year until it hits 67.

Rep. Ryan also proposed changes to Medicaid: The budget would convert Medicaid into a block grant program to reduce spending by $810 billion over 10 years.

More Articles on Healthcare Cost and Healthcare Reform:

Rep. Paul Ryan's New Budget Proposal Has Revised Medicare Cuts
Two Republican Senators Release New Medicare Overhaul Plan

White House: New Wyden-Ryan Plan Would "Undermine" Medicare

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