Trump's health care budget means deep cuts for safety net - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 24, 2017 Newswires
Share
Share
Post
Email

Trump’s health care budget means deep cuts for safety net

Associated Press

WASHINGTON (AP) — Candidate Donald Trump promised to improve health care, but as president his first full budget calls for deep cuts to popular insurance programs. And it omits any proposal for negotiating prescription drug prices, a Trump talking point.

While not addressing Medicare's long term financial problems, the budget targets the much smaller Children's Health Insurance Program, or CHIP. And Trump's Medicaid cuts appear even bigger than those in the health care bill recently passed by House Republicans, above what would be needed to fulfill the GOP vow to repeal "Obamacare."

Both safety net programs are federal-state collaborations, and such cuts would leave states with hard choices: spend more of their own money; restrict enrollment; cut benefits, or reduce payments to hospitals and doctors.

"If states get fewer dollars from the federal government, there are only so many options, because states have to balance the budget every year," said Elizabeth Carpenter, a health policy expert with the consulting firm Avalare Health.

Trump's budget was silent on bargaining with the pharmaceutical industry to reduce the cost of prescription drugs, a topic the president has often touched on. But the budget repeated Trump's previous proposals for double-digit percentage cuts to the National Institutes of Health and the Centers for Disease Control and Prevention, considered nonstarters even by Republican lawmakers.

The trillion-dollar-plus Department of Health and Human Services, whose programs cover more than 130 million people, did not hold its customary budget briefing on Tuesday. From Europe where he is attending a world health conference, HHS Secretary Tom Price released a statement that said the budget "outlines a clear path toward fiscal responsibility by creating efficiencies that both improve services and save money."

As a candidate and as president Trump has frequently talked about making health care more affordable for regular folks, including by lowering premiums and deductibles. He promised not to cut Medicare, and initially, Medicaid as well. But to some experts, Trump's budget looks more like a cost shift from the federal government to the states and to people now benefiting from coverage expansions in the Obama years.

"I think it will be challenging for states to try to figure out what to do," said Trish Riley, executive director of the nonpartisan National Academy for State Health Policy, which advises states.

Children's health insurance previously had not figured as a major issue for the administration. The CHIP program covers about 7 million children, and traditionally enjoyed bipartisan support. Trump's budget would extend CHIP for another two years, but it would also cut $5.8 billion.

"It's a big impact," said Riley. States would receive significantly lower overall payments from the federal government, and Washington would no longer match state spending on coverage for kids whose families make more than two-and-a-half times the federal poverty level, about $51,000 for a family of three.

More than half the states now cover children above the administration's proposed cutoff, Riley said. Administration officials say that the limitation proposed in the budget would focus taxpayer money on families who need it the most.

Medicaid is facing even bigger cuts. Already, the House GOP bill would roll back former President Barack Obama's Medicaid expansion while also capping future federal financing for the program. The Congressional Budget Office estimates that would reduce federal Medicaid spending by $839 billion over 10 years.

Trump's budget would squeeze additional savings beyond that, but congressional aides say how much is not exactly clear. White House Budget Director Mick Mulvaney has indicated that the budget uses a lower growth rate for the federal government's share of future Medicaid spending.

"The Trump budget assumes hundreds of billions more in Medicaid cuts than the House bill," said Edwin Park, a health policy expert with the Center on Budget and Policy Priorities, which advocates for low-income people.

Older

Sen. Thune: Obamacare Is Not and Has Never Been the Solution

Newer

Rep. Price Issues Statement on President Trump’s Budget Request

Advisor News

  • CT governor’s candidates claims: What’s true, and what’s misleading
  • Retaining clients by giving them a memorable experience
  • Addressing the longevity paradox
  • Employers shift focus from retirement access to financial outcomes
  • Helping widowed clients navigate their new financial reality
More Advisor News

Annuity News

  • Farm Bureau P&C insurers post first underwriting gain since 2021
  • Legacy Marketing, Malibu Life launch two fixed indexed annuities
  • Changing client priorities are reshaping annuity conversations
  • Solen Software acquires annuity software provider Cooperative Technologies
  • MassMutual Expands Lending Options With New Secured Credit Line
More Annuity News

Health/Employee Benefits News

  • Cost of employer-sponsored health insurance plans rises again, nonpartisan survey finds
  • Centene sues feds over low ratings for senior health plans
  • Terry Savage: Small business owners, now is the time to offer health insurance coverage
  • Aldermen select employee medical insurance broker services provider
  • Southwest Bridge Health focusing on insurance coverage gap in Berrien County
More Health/Employee Benefits News

Life Insurance News

  • Life insurer ordered to stop selling new policies in Virginia
  • AM Best to Present and Participate at 2026 Shanghai International Reinsurance Conference
  • Agents often missing from the loop on life, LTC insurance rate increases
  • Meiji Yasuda Life Insurance Company Trademark Application for “PEACE OF MIND, FOREVER” Filed: Meiji Yasuda Life Insurance Company
  • SoFi and Prudential Financial team up to expand access to life insurance
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.