The financial future of the part of Medicare that pays older Americans’ hospital bills has deteriorated significantly, according to an annual government report that forecasts that the trust fund will be depleted by 2026 — three years sooner than expected a year ago. According to the report, less money will be flowing into the hospital-care trust fund in part because the tax law passed this year will cause the government to collect less in income taxes.
After instituting a $1.5 trillion tax cut, the Senate majority leader said Tuesday that the only way to lower the record-high federal deficit would be to cut entitlement programs.
The White House released its 2020 budget proposal on Monday,
proposing more than $1 trillion in cuts to the popular programs Medicare
and Medicaid and giving insight into what the executive branch would do
if Congress didn’t control the federal government’s pocketbook.
The most notable cut comes out of Medicaid, a health program for
people who are low-income or have a disability, which Trump proposes
cutting by more than $700 billion over 10 years.
The Trump administration said on Thursday that it would allow states to cap Medicaid spending
for many poor adults, a major shift long sought by conservatives that
gives states the option of reducing health benefits for millions who
gained coverage through the program under the Affordable Care Act.
House Democratic leadership came under fire Tuesday after it was
reported a proposal is now under consideration to backstop for-profit
healthcare insurance companies with taxpayer dollars instead of simply
opening public programs like Medicare and Medicaid to those laid off or
uninsured amidst the coronavirus outbreak ravaging the country.