Medicaid spending slashed over next 20 years under GOP bill

President Trump has claimed that the GOP bill not only does not cut spending, but tweeted a chart purporting to show Medicaid spending going up by $69 billion in 2026.

Ian Marsh | Jul 02, 2017

The nonpartisan Congressional Budget Office (CBO) estimates that the Senate version of healthcare legislation will reduce spending on Medicaid by some 35 percent over the next two decades, according to a report by Bloomberg.

"A large gap would grow between Medicaid spending under current law and under this bill," the CBO report said. "States would continue to need to arrive at more efficient methods for delivering services and to decide whether to commit more of their own resources, cut payments to health-care providers and health plans, eliminate optional services, restrict eligibility for enrollment, or adopt some combination of those approaches."

The Republican bill, called the Better Care Reconciliation Act, cuts spending from 2 percent of the GDP this year to 1.6 percent in 2036. The reductions come from caps on individual spending and phasing out of Obamacare's Medicaid expansion.

President Trump has claimed that the GOP bill not only does not cut spending, but tweeted a chart purporting to show Medicaid spending going up by $69 billion in 2026.

"Democrats purposely misstated Medicaid under new Senate bill - actually goes up," Trump tweeted Wednesday.

But Senator Ron Wyden (D-Oregon) said Thursday that the Trump administration is misleading the American people.

"These cuts will leave states with unfathomable 'choices' like whether sick children get essential treatment or pregnant women get prenatal care or older Americans can receive adequate nursing home care," said Wyden in a statement, as reported by Bloomberg.

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