Trump Cuts Medicare Spending
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Is Trump making cuts to Medicare, or is he rearranging the way Medicare spending works? With the election approaching, there are questions about what will happen to federal programs such as Medicare and Social Security. If President Donald J. Trump is reelected, will proposed budget cuts for 2021 have adverse effects on seniors? We’ll go over the details of Trump’s proposal this way you can determine for yourself whether or not these changes are beneficial.
Is Trump Cutting Medicare
In Trump’s budget for 2021, he proposes more than $500 billion in cuts on Medicare spending through 2030. This fact has caused concern among those on the program or who will be soon. But, without these “cuts” Medicare spending would be over $800 billion more than what the government would spend if it stays on the current path. So, that raises the question, is this really a cut?
The 2021 budget is similar to Trump’s previous budget. It attempts to reduce the national deficit. Regarding Medicare, it primarily strives to eliminate fraud, waste, and abuse, which contribute to unnecessary spending.
Most of the cuts to the budget affect hospitals and other doctors. Reimbursement rates would fall under this proposal. Also, roughly $50 billion in savings will come from caps on graduate medical education payments. But will the people who rely on the program also be affected?
How Do Trump’s Budget Cuts Affect Medicare
The White House has proposed that doctors and patients request prior authorization for specific procedures before they take place. But, many plans or services require prior authorization even before a reduction in Medicare spending. Also, changes would be made to encourage patients to visit physician’s assistants or nurse practitioners as their primary doctor.
The potential change with the most significant impact on seniors is the reduction of reimbursement rates. But, only because doctors may cease to accept Medicare if there was a decrease in reimbursements. If this goes through, some patients could lose access to their preferred providers. Although, this is only a speculation. We won’t know the true effects until the proposal is active.
Overall, the changes will affect doctors more than patients. Experts believe there is room to spend less without hurting Medicare recipients. Although, with the Democratic party running the house, it’s possible this proposal has no chance for passage.
Lastly, Trump is proposing a Part D plan reform. The budget proposal states plans to make generic drugs more affordable, establish a maximum out-of-pocket, and further reduce costs. Drug cost reform is a popular plan among voters of all political parties.
How Do Trump’s Budget Cuts Affect Social Security
The budget cuts also include over $25 billion from Social Security in the next ten years. Like the Medicare cuts, this knowledge causes concern for seniors. The proposed reductions don’t affect the retirement component of Social Security. Social Security Income and Social Security Disability Insurance will be affected by the cuts. However, proposed restrictions in SSDI could affect Medicare eligibility for disabled people.
What Do Trump’s Cuts Mean for Medicare Beneficiaries
Trump’s proposed adjustments to Medicare will primarily affect doctors. So, it’s unlikely you’ll see changes to your benefits as a result. The most critical change that could affect patients is reduced reimbursements. This change might affect the ability of some patients to see the providers they prefer.
Keep in mind that this budget is simply a proposal. There’s a chance that the budget won’t even become a reality. It acts as an outline. Bipartisan support is needed to pass the proposals. They must get through both the Republican-ruled Senate and Democrat-ruled House of Representatives.
Overall, this budget proposal resembles past efforts to control Medicare spending by targeting doctor payments. Only time will tell if this plan is something we actually implement. As mentioned before, with a house full of Democrats, it’s unlikely this will pass. Either way, a compromise is necessary to maintain funding for the Medicare program.