Medicaid cuts are part of proposed budget.

How will Medicaid cuts affect the end user who needs the insurance coverage for basic healthcare needs? President Donald Trump is offering a $4.8 trillion budget plan for the upcoming fiscal year that rehashes previously rejected spending cuts while leaving Social Security and Medicare benefits untouched . Trump’s budget plan reveals a $1.0 trillion dollar budgets.

The new budget, according to senior administration aides and a copy of summary tables, sees a $1.08 trillion budget deficit for the ongoing budget year and a $966 billion deficit gap in the 2021 fiscal year starting Oct. 1.The budget’s most significant policy prescriptions — an immediate 5% cut to non-defense agency budgets passed by Congress and $700 billion in cuts to Medicaid over a decade — are nonstarters on Capitol Hill. The Trump budget is a blueprint written as if Trump could enact it without congressional approval. It relies on rosy economic projections and claims of future cuts to domestic programs to show it is possible to bend the deficit curve in the right direction. Trump, the Democratic-controlled House or the GOP-held Senate do not have any interest in tackling a chronic budget gap that forces the government to borrow 22 cents of every dollar it spends. Trump’s reelection campaign, meanwhile, is focused on the economy and the historically low jobless rate while ignoring the government’s budget.

Dangerous precedent for healthcare cuts to the poor.

If budget cuts change or reduce patients access to healthcare by each state, it might  prove to cause situations of endangered health for low income citizens and increase possible situations of malpractice.  Block grants are part of a policy solution that the Trump administration believe would save money by giving specified dollar amounts to each state and allowing them to deal with the Medicaid fallout.

The argument supported by Medicarel law is: 1) the part of the Medicaid Act that governs how much money each state gets from the federal government cannot be altered through a Medicaid waiver; and 2)  the proposal has legal shortcomings with the requirement that waivers advance the purpose of Medicaid to provide for poor people who need the care.

No wiggle room for federal funding changes by HHS secretary.

The Medicaid Act does allow for the HHS secretary to waive compliance with the requirements of seven sections under the law, but the section addressing federal funding is not included in that group.  The current equation is that states receive money from the federal government for Medicaid based on quarterly cost reporting whereby they receive a portion of those funds in a payment.  Match rates vary based on per capita incomes, certain services provided, and whether the state has expanded Medicaid including certain hospitals that service increased numbers of Medicaid patients.

Attorneys will be active in the outcomes.

Attorneys at all levels of higher government will need to iron out the details of making cuts to Medicaid to reduce the budget.  However, on an individual level, if you or someone you love is harmed by a lack of treatment to do a decrease in previously covered insurances that are necessary for continued health, an attorney may be able to help with the insurance procurement or claims against a medical facility when necessary.

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