Obama's proposed Medicare and Medicaid cuts could negatively impact beneficiaries, experts say

Share this article:
President Barack Obama
President Barack Obama

The Obama administration says that proposed reimbursement cuts to Medicare and Medicaid providers shield beneficiaries from access-to-care difficulties, but some experts aren't so sure.

Obama's deficit-reduction plan, released Monday, would reduce Medicare spending by $248 billion and Medicaid by $72 billion over 10 years. The savings, according to the plan, will be achieved by reducing reimbursements to providers, such as physicians. Some critics have argued that these reductions just shift costs to states. Other economists warn that the government must pay attention to how they enact these reductions, particularly in reducing reimbursements to nursing homes that are already seeing payment cuts.

The Medicare Payment Advisory Commission, or MedPAC, released its own list of Medicare reductions on Sept. 15. MedPAC's proposal includes $23 billion in federal savings the next decade by rebasing reimbursement rates for nursing homes.

John C. Rother, president of The National Coalition on Health Care, told The New York Times that while the Affordable Care Act shows that it's possible to slow Medicare growth without hurting beneficiaries, “Medicaid shows that if you starve a program and provide inadequate reimbursement, access to doctors will be at risk.”
Share this article:

More in News

Hospitals slap the government with lawsuits over 'two-midnight' policy to reduce observation stays

Hospitals slap the government with lawsuits over 'two-midnight' ...

The American Hospital Association and other hospital groups have sued the federal government over the so-called "two-midnight rule," which was designed in part to ease access to skilled nursing services. ...

Government would pay seniors to create advanced directives under Senate bill

Medicare beneficiaries would be paid to create advance directives and store them in an easy-access system if a recently proposed Senate bill were to become law.

MS patients less tense and pessimistic in nursing homes than at home, ...

Nursing home residents with severe multiple sclerosis report being less tense and pessimistic than similar individuals receiving care at home, according to recently published research findings.