Last week the White House released a federal budget that, among other changes, would reduce projected Medicaid spending by $610 billion across 10 years.
The proposed reduction has received a lot of negative press. Chairman of the Democratic National Committee Tom Perez, claims the budget “absolutely dismantles Medicaid.” The New York Times reports that the budget “cuts deeply into Medicaid.” Other articles suggest the budget would “gut” the federal program.
Verdict: False
Medicaid is a healthcare entitlement that supports about 69 million low-income Americans, including adults, children, the disabled and the elderly. State governments administer the program, which federal dollars heavily subsidize.
In 2016, the federal government spent $368 billion on Medicaid. Federal expenditures are expected to balloon in the coming years, reaching $688 billion in 2027 – an increase of about 87 percent – under baseline projections from the Office of Management and Budget (OMB).
The White House’s proposed budget also grows Medicaid substantially over time, but the increases are less steep year over year. From 2016 to 2027, federal expenditures would increase about 42 percent. The lower growth rate would save the government $610 billion when compared to the baseline estimate.
What many refer to as “cuts to Medicaid” are actually cuts to the growth of Medicaid, not the current size of the program.
FACT CHECK: Does The Trump Budget Gut Medicaid?
The proposed reduction has received a lot of negative press. Chairman of the Democratic National Committee Tom Perez, claims the budget “absolutely dismantles Medicaid.” The New York Times reports that the budget “cuts deeply into Medicaid.” Other articles suggest the budget would “gut” the federal program.
Verdict: False
Medicaid is a healthcare entitlement that supports about 69 million low-income Americans, including adults, children, the disabled and the elderly. State governments administer the program, which federal dollars heavily subsidize.
In 2016, the federal government spent $368 billion on Medicaid. Federal expenditures are expected to balloon in the coming years, reaching $688 billion in 2027 – an increase of about 87 percent – under baseline projections from the Office of Management and Budget (OMB).
The White House’s proposed budget also grows Medicaid substantially over time, but the increases are less steep year over year. From 2016 to 2027, federal expenditures would increase about 42 percent. The lower growth rate would save the government $610 billion when compared to the baseline estimate.
What many refer to as “cuts to Medicaid” are actually cuts to the growth of Medicaid, not the current size of the program.
FACT CHECK: Does The Trump Budget Gut Medicaid?
