At first glance, it looks like President Trump wants to cut Medicare by $845 billion. It is more complicated than that.
, but a closer look suggests that the reductions are much smaller, most would affect providers rather than beneficiaries, and many recycle old ideas that have little chance of ever being adopted.
While even $515 billion is a lot of money, very little would directly affect beneficiaries. CRFB figures about 85 percent of the cuts would come from hospitals, doctors, skilled nursing facilities, and other providers.To start, Trump is moving about one-third of the money--$269 billion—into a different section of the budget. He would not reduce spending for these two programs, which fund certain hospitals and medical education, he’d just shift them out of the Medicare account to somewhere else.
None of these changes would increase costs to beneficiaries and some could, at least in theory, lower Medicare premiums. The potential downside: Some hospitals or nursing homes may stop providing services if they are no longer profitable.About 11 percent of the cost savings would come from changes in the Medicare Part D drug benefit. Some beneficiaries would pay more out of pocket for prescription drugs and others less, depending on what medications they take and how much they cost.
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