House rejects bill that would have capped Medicare, Medicaid spending

Share this content:

A bill introduced in the House by Rep. Jim Nussle (R-IA) that would have capped Medicare and Medicaid spending was defeated 268-146 – an obvious victory for providers.

The bill would have required the government to offset Medicare and Medicaid improvements with spending cuts elsewhere, either within the programs themselves or other federal programs. The clincher was an amendment that would have established a hard cap on aggregate spending in the two programs.

The cap would have reduced Medicare and Medicaid spending from 2006 to 2014 by $800 billion and $400 billion, respectively, according to a study by the Center on Budget and Policy Priorities, a Washington-based think tank.