By Sarah Rieder | PoliticoWashington, DC—In an effort to close a projected $21.3 billion deficit, the Trump administration on Thursday announced a slate of cuts, including $7.7 billion in cuts to Medicaid and other state and local government spending.
But the cuts will be mostly cosmetic and include $5.5 billion to expand Medicaid in states that don’t expand it as part of the president’s Affordable Care Act replacement bill.
The president’s proposed budget includes $4.6 billion in savings to Medicaid, according to a budget document obtained by Politico.
Those savings are intended to offset the $21 billion in spending reductions in the president’ted budget, which also includes a $1.1 trillion tax cut.
The $7 billion cuts to the Medicaid program are the largest in nearly a decade.
Medicaid spending in the United States is now about $20 billion a year, according, and the Affordable Care Care Act is projected to reduce the deficit by $1 trillion over the next decade.
The White House said it will “continue to work with states and other stakeholders to help address the state of health care spending.”
The cuts will save the federal government about $4 billion in 2019, and some $2 billion in 2020.
“States are going to get more bang for their buck than we’re going to give,” HHS Secretary Tom Price told reporters Thursday.
The cuts are a boon to some states.
They include $1 billion in additional funding for Medicaid expansion in states where it has not been expanded in the past, according a budget proposal from the Centers for Medicare and Medicaid Services (CMS).
The administration also aims to increase spending for health insurers by $3 billion over 10 years, according an analysis of the proposed budget released by the Congressional Budget Office (CBO).
The CBO estimates that states that expand Medicaid and others would save $6.2 billion annually in health care costs.
The Trump administration has not said how much of the savings will be used for state health care programs.
But some of the money will be devoted to helping states expand Medicaid.
For example, the administration has proposed $1,200 for every Medicaid enrollee for 2020.
But that would be a significant cost to the states, and would include a $500 payment for individuals enrolled in private plans and a $300 payment for those who are enrolled in Medicaid.
The money would be spent on the cost of expanding Medicaid to more low-income Americans.
The budget would also allow states to set up “high risk pools,” which would give low-cost insurers more flexibility in choosing who to insure.
The federal government also aims at making changes to the program, which has become a source of controversy among lawmakers, who argue it is too expensive and too slow to expand coverage to low- and moderate-income people.
The CBO said in a recent report that it would be “more effective” if states used some of their money to make a tax credit for people who purchase insurance.
The administration said it plans to make changes to Medicaid in 2019 and 2020, and will work with Congress to help the states “meet their funding needs.”
For states that have expanded Medicaid, there will be a $10 million payment for each new enrollee, which will be available to low income people in the Medicaid expansion.
However, the budget proposal says the money would also be available for the states to expand to lower income Americans, which is not currently the case.
“We have to do more to help people get covered,” Price said Thursday.
“And we have to be realistic about the impact of these changes.
We have to make sure we get the dollars and do it smart.”
The White Trump administration said the proposed cuts to Medicare and other federal spending were meant to be temporary.
The plan includes $6 billion to pay for the Obamacare replacement bill, and another $5 billion for a new health care entitlement, known as “Medicare for All,” which is a system of universal coverage for all Americans.
Some states have not yet received any payments, according.
The health care program has faced controversy over whether it can afford the billions in new spending.
A Congressional Budget Committee analysis last month said the $2.7 trillion spending bill is likely to result in a $3 trillion increase in federal deficits by 2026.
The Senate passed a version of the bill that includes $2 trillion in savings.
However Democrats have blocked the Senate from voting on the bill.
Democrats have also objected to changes to Medicare’s payment structure, which would allow insurers to raise premiums on older Americans and people with preexisting conditions, as well as cuts to medical devices that cover preventive care and prescription drugs.
The House of Representatives has passed its own version of a bill, but the Senate has not yet taken a position.
The nonpartisan Congressional Budget and Impoundment Office (CPI) released a study Thursday that found the tax cuts would add an additional $2,500 for the average