FY 2018 House Budget Resolution and Its Effect on Seniors
The House Budget Resolution for Fiscal Year (FY) 2018 would make cuts to the Medicare, Medicaid and
The House Budget Resolution for FY 2018, H. Con. Res. 71, introduced by
Medicare
The budget resolution proposes
Privatizing Medicare with Vouchers/Premium Support Payments
Beginning in 2024, when people become eligible for Medicare they would not enroll in the current traditional Medicare program which provides guaranteed benefits. Rather they would receive a voucher, also referred to as a premium support payment, to be used to purchase private health insurance or traditional Medicare through a Medicare Exchange. The amount of the voucher would be determined each year when private health insurance plans and traditional Medicare participate in a competitive bidding process. Seniors choosing a plan costing more than the average amount determined through competitive bidding would be required to pay the difference between the voucher and the plan's premium. In some geographic areas, traditional Medicare could be more expensive. This would make it harder for seniors, particularly lower-income beneficiaries, to choose their own doctors if their only affordable options are private plans that have limited provider networks. Wealthier Medicare beneficiaries would be required to pay a greater share of their premiums than lower-income seniors.
Raising the Medicare Eligibility Age
Beginning in 2024, H. Con. Res. 71 would gradually increase the age of eligibility for Medicare to correspond with
* 65 and 66 years olds who would have to buy private insurance, which can be age rated;
* younger people buying health insurance coverage in an older risk pool;
* Medicare beneficiaries left in an older and less-healthy risk pool;
* employers providing health insurance to workers and retirees; and
* State Medicaid programs.
Increasing Beneficiaries' Out-of-Pocket Costs
The National Committee opposes a proposal in H. Con. Res. 71 to expand income-related premiums under Medicare Parts B and D until 25 percent of beneficiaries are subject to these premiums. A
Repealing and Replacing the Affordable Care Act
According to the
Medicaid
By assuming the enactment of the ACA repeal, H. Con. Res. 71 would destroy the current Medicaid program and slash benefits for low-income individuals. These changes would be detrimental to seniors and others who rely on Medicaid.
Changing the Structure of Medicaid from an Entitlement to Per Capita Caps or a
Medicaid provides funding for health care to help the most vulnerable Americans, including low-income seniors, people with disabilities, children and some families.
Based on the House-passed
While block grants or per capita caps would give state governments greater flexibility to manage and design their Medicaid programs, such discretion in no way compensates for the significant reductions that beneficiaries, including nursing home residents and their families, could face.
Repealing the Medicaid Expansion under the Affordable Care Act (ACA)
Beginning in 2014, states have had the option to receive federal funding to expand Medicaid coverage to uninsured adults with incomes of up to 138 percent of the federal poverty level (
H. Con. Res. 71 would repeal the Medicaid expansion in the ACA by
* Eliminating billions of federal dollars to states to provide their residents with health care and financial protection. Under the ACA, the federal government paid 100 percent of the cost for newly eligible low-income adults in Medicaid for the first three years (2014-2016), phasing down to 90 percent by 2020.
* Preventing low-income adults from receiving access to health care services. Repealing the Medicaid expansion would result in 14-17 million people losing coverage. In total, the House budget resolution would cut
Moreover, the National Committee believes that issues relating to the solvency of the Social Security Trust Funds and benefit adequacy should be considered separate and apart from any discussion of the nation's debt or deficit. In addition, the
Additionally, H. Con. Res. 71 proposes reforming the
NATIONAL COMMITTEE POSITION
The National Committee opposes provisions included in the House budget resolution that would reduce health care coverage through Medicare, Medicaid and the Affordable Care Act, as well as proposals that would be detrimental to the
* Ending traditional Medicare by converting it from a defined benefit to a defined contribution program;
* Raising the Medicare eligibility age;
* Increasing costs for Medicare beneficiaries through higher cost sharing and income-related premiums and by restructuring the program and Medigap in ways intended to reduce federal spending;
* Repealing the Affordable Care Act, which has extended the solvency of the
* Transforming the Medicaid program from a federal/state partnership into either per capita caps or a block grant program, which would result in arbitrary cuts to vulnerable seniors and other individuals;
* Repealing the Medicaid expansion, which would hurt states financially and negatively affect low-income adults who need access to health care services;
* Proposals to reform
LMI Awarded Follow-on Contract With the Centers for Medicare and Medicaid Services
Reviews of Shared National Credit Portfolio Find Risk Remains High Underwriting and Risk Management Practices Continue to Improve
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News