Congressional Budget Office Projects Deep Long-Term Medicaid Spending Cuts Under Senate Republican Healthcare Plan

On Thursday the Congressional Budget Office (CBO) released a follow up summary of the Senate Republican’s Better Care Reconciliation Act of 2017 that was scored on Monday as Republicans gear up to repeal and replace Obamacare.

The latest report on Thursday from the CBO offered a projection of the long term effects of the Better Care Reconciliation Act of 2017 on Medicaid spending.

The Congressional Budget Office projects that Medicaid spending levels under the Better Care Reconciliation Act of 2017 will be cut and deepen over time.

“Medicaid spending under the Better Care Reconciliation Act of 2017 would be 26 percent lower in 2026 than it would be under the agency’s extended baseline, and the gap would widen to about 35 percent in 2036” the CBO wrote in their report.

According to the CBO’s extended baseline, overall Medicaid spending would grow 5.1 percent per year over the next two decades, partly because prices for medical services would increase.

However, if the Better Care Reconciliation Act of 2017 becomes enacted, spending would increase at a rate of 1.9 percent per year through 2026 and about 3.5 percent per year in the following decade.

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John Schweitzer


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