Federal budget negotiations propose radical changes in Medicare and Medicaid

This article posted by Naela summarizes the proposed changes to Medicare and Medicaid in the current budget debate. It is a great resource for understanding how the proposals could impact the way older and disabled Americans have access to affordable health care.

Federal budget negotiations propose radical changes in Medicare and Medicaid

Briefly, Medicare and Medicaid have provided health insurance coverage to older people, the disabled, women, and families with children for more than 45 years. These programs ensure that vulnerable populations who could not get health care coverage from private health insurance have access to basic health coverage.

The futures of Medicare and Medicaid are uncertain as a result of proposed reform and deficit reduction proposals under discussion in Congress.

One such proposal which promotes radial change is that of Congressman Paul Ryan (R-WI) who chairs the House of Representatives Budget Committee. Ryan’s proposal, “The Path to Prosperity: Restoring America’s Promise” would reduce the deficit primarily by cutting government spending by $6.2 trillion over a ten year period.

As part of this reduction in government spending, the Ryan proposal would end the Medicare and Medicaid system as they currently operate. Instead, Medicare benefits would shift to a premium support or voucher model and federal funding for Medicaid would be converted to a block grant system.