Senate and House Republicans last week released budgets that cover 1996 to 2002. Reductions for selected provisions represent the amount that spending will go down from the level projected by the Congressional Budget Office. For example, the CBO estimates that Medicare spending will grow from $176 billion in 1995 to more than $300 billion by 2002, an average of more than 10% annually. Under the Republican Senate plan, spending growth would be $256 billion less over the same period, increasing at an annual average of 6.9%.
Provision Senate budget House budget
Medicare spending reductions $256 billion $283 billion
Medicaid spending reductions1 $175 billion $184 billion
Disproportionate-share payments Funding would be â– capped at 1995 level â– (projected to be $3.4 â– billion) Phased out under â– one option, â– saving $28.8 â– billion
Other health programs affected: â– Agency for Health Care Policy and Research Would cut funding by â– 75%. Specific â– savings weren't â– given. However, the â– Clinton budget called â– for $148 million in â– funding for 1996. Eliminated by â– 1998, saving â– $856 million
Office of the Assistant Secretary of Health Eliminated. Savings â– weren't given.
Savings from assorted federal health programs. $6.1 billion
Under the Senate plan, growth in Medicaid spending, which would be converted to a block grant program, would be capped at 8% in 1996, 7% in 1997, 6% in 1998, 5% in 1999 and 4% thereafter. The House plan calls for block grants and caps at 8% in 1996, 5.5% in 1997 and 4% thereafter.