House Budget Committee Releases Budget Resolution with Significant Medicaid Cuts - April 6, 2011

The U.S. House Budget Committee released its proposed FY 2012 Budget Resolution on April 5. The resolution reduces federal spending by $5.8 trillion below the current baseline across 10 years. It would repeal the coverage expansions included in the Affordable Care Act and provides no funding for implementation of the law. Further, the resolution establishes a binding cap on total government spending as a percentage of the economy with automatic enforcement by sequester. Of particular concern for NAPH, the resolution includes $771 billion in cuts to Medicaid across 10 years. The Medicaid provisions include:

• Eliminating the Medicaid expansion included in the Affordable Care Act
• Converting Medicaid to a state block grant
• Eliminating Federal Medicaid "program requirements and eligibility criteria"

The resolution would also fundamentally restructure Medicare. Starting in 2022, new beneficiaries would no longer receive traditional Medicare benefits. Instead, they would choose a health insurance plan offered by a federally-administered exchange and would receive a federal subsidy to cover part of their monthly premium.
The Budget Committee is considering the resolution today. NAPH has asked member hospitals with delegation members who sit on the budget committee to contact the budget committee members to express concern about the budget resolution. We will be sending an alert to the entire membership after the committee mark-up.