House Republicans are proposing major changes to Medicare and Medicaid as a part of a blueprint to balance the budget within 10 years. The proposal depends on repealing the Obamacare, including financial assistance for low- and middle-income individuals, and the taxes implemented to help pay for coverage expansion programs.
The budget calls for shifting to a premium support model for Medicare, in which beneficiaries would receive subsidies to shop for coverage on the open market. But that change—which Democrats denigrate as vouchers—wouldn’t be implemented until 2024 to limit the impact on current beneficiaries.
House Republicans also want to overhaul Medicaid to give states greater flexibility on how they spend those dollars and merge it with the Children’s Health Insurance Program. Referred to as “State Flexibility Funds,” the approach would resemble block grants to states that they could use to provide healthcare coverage to low-income households.