Obama Won't Cut Medicaid, More Willing to Budge on Medicare

A top economic adviser within the White House has said President Barack Obama will not make any federal Medicaid cuts in his upcoming budget proposal, but that means Medicare may be more vulnerable to upcoming reductions, according to a report from The Hill.

Gene Sperling told The Hill the White House is "not willing to accept even the Medicaid savings that we had once put on the table," meaning the government will "have to look harder from Medicare savings…If you decide you are going protect Medicaid more, it means you're going to have to make some tough choices in other places."

The Obama administration is making the commitment as the Patient Protection and Affordable Care Act heads toward 2014, a year with significant provisions scheduled to take place. Starting in 2014, states can expand their Medicaid programs, though they will not be forced to as the Supreme Court ruled last summer.

Several Republican governors have been leery of expanding their Medicaid programs, which will be 100 percent covered by the federal government for the first few years. Mr. Sperling said the decision to keep Medicaid cuts off the table will give skeptical governors "the understanding that the rug will not be pulled out from them," according to the report.

The National Association of Public Hospitals and Health Systems, the group representing the country's safety-net hospitals that mostly rely on Medicaid funding, praised the Obama administration's commitment.

"This is welcome news for the millions of people who rely on the safety net for essential healthcare services, for their communities and for the hospitals and health systems committed to their care," said Bruce Siegel, MD, president and CEO of NAPH. "The president understands the importance of preserving access to care for every person, regardless of economic circumstance."

More Articles on Medicare and Medicaid:

Health Reform in 2013: What's Happened, What's Left & What it Means for Providers
38 Recommendations to Move From Sick Care to Healthcare
9 Recent Medicare, Medicaid Issues

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