Trump Budget Proposes Cuts to Aging Services

Although it is only the first step in a process that Congress will control, President Trump’s budget proposes to cut Medicaid and Medicare spending by more than $2 trillion over 10 years. The proposal once again calls for Medicaid funding to states to be restructured using a block grant approach or per-person caps and seeks to do away with provider taxes. Cuts to Medicare would exceed $800 billion over 10 years, $100 billion of which would come from post-acute care services which would be required to shift to a site-neutral payment system by 2025. Senior housing and non-medical community aging services would also face reductions. A LeadingAge National article listing proposed reductions to a number of other programs that serve seniors is available here.

The President’s proposed budget is only the first step in the process of crafting the budget for the fiscal year that will begin on Oct. 1, 2019. It is now up to Congress to determine spending levels for federal programs for fiscal year 2020. LeadingAge members from across the nation are currently gathered in Washington and will have an opportunity to discuss priority issues with their federal lawmakers.

Citing the devastating impact the President’s proposals would have on New York State if enacted, Governor Cuomo rescinded some of the Medicaid cuts in his State Budget proposal to which the Legislature had indicated opposition. Latest State Budget and other legislative updates are provided in LeadingAge NY's weekly Legislative Bulletin.