Bush’s proposed Medicare budget would cut $15 billion over five years through a reduction of annual updates for inpatient care. It would also cut $25 billion from payments to hospitals serving large numbers of poor people, and $20 billion from payments for capital projects such as putting up new buildings and buying equipment, the New York Times reports.
The president would also cut $1.2 billion from Medicaid next year and nearly $14 billion over five years, according to the NYT. One cost Bush wouldn’t cut: Payments to private insurance companies who manage Medicare Advantage plans, which cost more than traditional Medicare plans.
Medicare and Medicaid accounted for $627 billion in federal spending last year, and the cost of the programs is projected to double in the coming decade, the Times said.