President Trump’s budget proposal will include $800 billion in cuts to Medicaid, according to those briefed on the plan.
CNN and others are reporting the cuts would come over the next decade and could include reductions in the federal funding for the Medicaid program, shifting more of the burden on funding the program to states. States would then be freer to tighten eligibility requirements, cut benefits or reduce provider payments.
The proposal will be unveiled tomorrow but faces a significant battle in Congress, which could significantly alter Trump’s outline.
Medicaid, the government health insurance program for poor children, adults, the disabled and the elderly, serves as many as 70 million people. The Trump proposal, coupled with the House Republican healthcare plan to trim Medicaid costs by some $800 billion over the next 10 years, could remove about 10 million people from the benefit rolls.
According to the Washington Post, the proposal will also give states more power to pass laws requiring employment in order to receive some benefits. Earlier this year, Alabama became one of three states limiting able-bodied adults without dependents to three months of benefits within a 3-year time frame unless they are working or participating in a job training program.
The Medicaid cuts are just part of a major entitlement program overhaul that includes reductions in food stamps and some healthcare programs designed to save as much as $1.7 trillion.