Republicans on Wednesday unveiled their latest proposal to shore up the nation’s Medicare program, saying it will give seniors an even larger slice of the pie while reducing spending.
President Donald Trump has been pressing Congress to extend Medicare’s solvency by at least two years in order to help the program cover rising costs.
That’s the most of any U.S. president since World War II.
The bill would cut federal spending by $4 trillion over the next decade, the House and Senate leaders said.
But the House GOP leaders said they plan to include $4 billion for health insurance marketplace and home health agencies that will help lower costs.
They’re calling for $8 billion for the Medicaid expansion, which covers more than 3 million low-income people, but would also cut Medicaid funding for states that don’t expand it.
That would cost $2.2 billion in 2024.
Democrats have criticized the proposal for taking away money from the Children’s Health Insurance Program (CHIP), which provides health care coverage for nearly 8 million low income and elderly Americans.
The Senate GOP leaders say their proposal would make sure the CHIP money goes to states that expand Medicaid.
They said they would also provide $2 billion to help states make changes to Medicaid eligibility.
The proposal would also make changes in the way Medicare payments are paid out.
Instead of paying out the full cost of the cost of an item only when the payment is received, the bill would now pay the portion that covers more of the costs, the lawmakers said.
That means seniors would be eligible for payments at lower rates, which the GOP says will save money.
Republicans say they plan on reducing Medicare spending by another $4 to $4,000 a year over 10 years, but not by $3 billion.