Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
January 30, 2017 12:00 AM

Obama administration's report could help GOP justify Medicaid cuts

Virgil Dickson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Sylvia Mathews Burwell

    In its final Medicaid spending report, the Obama administration conceded that Medicaid enrollment growth and spending could deplete other federal programs.

    Both states and the federal government are spending more to cover more people that became eligible for coverage under the Affordable Care Act.

    While this recent report doesn't outline the biggest spending hikes in recent years, it does warn that increased spending could cause collateral damage.

    Medicaid expenditures for both the states and federal government grew 4.3% to $575.9 billion in 2016 and federal Medicaid spending grew 4.5% to $363.4 billion for the program to cover low income and disabled people, according to a CMS report posted Monday (PDF). The analysis takes place once a year and was completed for this cycle under then-HHS Secretary Sylvia Mathews Burwell.

    The admission comes as GOP lawmakers and the nominee for HHS secretary look for ways to cut spending in the program. Two Capitol Hill hearings on the matter take place this week.

    An estimated 11.2 million newly eligible adult enrollees were covered under expanded Medicaid eligibility in 2016, and enrollment is projected to increase at an average annual rate of 1.5% over the next 10 years and to reach 81.6 million in 2025, up about 13% from just over 72 million in 2016.

    From this year forward, enrollment and expenditures are expected to steadily increase, with total Medicaid expenditures growing to a projected $957.5 billion by 2025. The projected annual average growth rate of Medicaid expenditures from 2016 to 2025 is 5.7%, which is “notably faster than the projection of average annual GDP growth of 4.8% over the same period,” the report stated.

    The report says that these spikes could "displace spending on other important programs, or additional taxes or other revenue sources could be required to fund Medicaid." The report did not outline what could be cut. But, historically, education has been a program that has faced cuts when budgets are tightened.

    On Tuesday, the House Energy and Commerce Committee will host a hearing on how to better oversee the program, followed by another hearing Wednesday on how to “prioritize the most vulnerable” when determining the future of the program.

    A popular idea being floated around the Hill is to turn Medicaid into a block grant or impose a per capita cap on the program. The repeal of the ACA, currently underway in Congress, would also do away with the expansion of Medicaid that gave states the option to raise eligibility of the program to 138% of the federal poverty level.

    Neither idea is formally analyzed in the Obama report, however it was revealed that total Medicaid expenditures for the new adult enrollees were estimated to be $66.2 billion in 2016 and are projected to reach $103.4 billion by 2025.

    By 2025, the expansion states are projected to pay $10.3 billion of the costs for newly eligible adults.

    HHS secretary nominee U.S. Rep. Tom Price, an orthopedic surgeon from Georgia, put forward his ideas on reforming Medicaid in legislation he introduced last year meant to replace the ACA. Price suggested people could opt out of Medicaid and receive a tax credit to buy an individual plan. Price likely would encourage states to seek waivers for using Medicaid and other federal healthcare dollars their own way.

    Governors in expansion states, including Republican governors, say they've seen improvements in health and would like to maintain expanded eligibility.

    Patient advocates say block grants would lead states to tighten their Medicaid budgets which could result in benefits being cut. This report, isn't good for championing their stance, however.

    The report "provides political coverage,” said Tevi Troy, a former deputy HHS secretary in the Bush administration and president of the American Health Policy Institute. “You could have people say even the Obama administration said that if Medicaid spending wasn't cut in the long run it would cause a real problem for the federal and state budgets.”

    “The case for block-granting it has never been stronger,” said Dean Clancy, a policy consultant at Adams Auld and a former senior health policy adviser to congressional Republicans and the George W. Bush administration.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    abortion-pill-misoprostol-legal
    Abortion pill case advances to appeals court, on course to Supreme Court
    young doctor medical resident
    Federal physician recruitment program at risk
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare Alert: Sign up for this breaking news email to be kept in the loop as urgent healthcare business news unfolds.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing