Executive Budget Signals Major Cuts to Health Care

Earlier this month the Trump Administration released a budget proposal that calls for significant cuts to health care. Though Congress is unlikely to act on the proposal, it offers a glimpse into the President’s health priorities in 2021 and beyond.

The $4.8 trillion executive budget proposal would make the tax cuts prescribed by the 2017 Tax Cuts and Jobs Act permanent, at a cost of $1.5 trillion. In an effort to balance the budget, these tax cuts would be paid for by slashing budgets for Medicaid and other safety net programs.

The proposed budget calls for roughly $1.6 trillion in cuts to federal healthcare programs over the span of a decade, including:

• $844 billion in cuts related to the repeal and replacement of the Affordable Care Act, though the budget does not define a replacement strategy
• $920 billion in cuts to Medicaid, including $150 billion in cuts related to the implementation of work reporting requirements
• $79 billion in cuts tied to restricting eligibility for federal disability benefits

Although we are unlikely to see this budget enacted through Congress, we will likely see federal agencies pursue these priorities and programmatic cuts through administrative means.

CAA will continue to monitor the federal budget and will keep you abreast of any efforts to cut services.