House Republican budget plan clears committee

The House Budget Committee last night voted 20-16 to approve a Republican budget plan for fiscal year 2017, which would reduce Medicare spending by $449 billion and Medicaid and other health care spending by $1.03 trillion over 10 years. All Democrats, joined by two Republicans, voted against the resolution. The plan would reduce the deficit by $7 trillion over 10 years through $6.5 trillion in savings coupled with economic growth to balance the federal budget, and require legislation this year to achieve at least $30 billion in near-term mandatory savings. With respect to health care, the plan would repeal the Affordable Care Act; create and implement a “premium support” Medicare model, allowing beneficiaries to remain in “traditional Medicare” or transition to the new model; combine Medicare Parts A and B to create a single deductible for seniors; and reform medical liability laws to curb frivolous lawsuits. It also would repeal Medicaid expansion under the ACA and create a block grant program that gives states the option to tailor a program to their communities. AHA members received a Special Bulletin this week with more information.