Medicare provider payments could see $25B cut in 2018 due to GOP tax cut proposal — 5 things to know

Written by Megan Wood | November 15, 2017 | Print  |

The Congressional Budget Office reported Medicare payments to providers would witness a $25 billion cut in 2018 if a new tax bill is passed, according to Medscape.

Here are five things to know:

 

1. The House Republican tax bill, the Tax Cuts and Jobs Act, would add a prorated $150 billion to the federal deficit yearly for a decade.

 

2. Because of this boost to the deficit, federal programs like Medicare would experience cuts.

 

3. The Statutory Pay-As-You-Go Act of 2010 will require the White House Office of Management and Budget to push $136 billion worth of sequestration cuts in 2018, if Congress doesn't "offset the deficit increase," Medscape reports.

 

4. PAYGO sequestration will limit Medicare payments to providers by 4 percent at the most.

 

5. House Republicans have noted tax cuts would boost the economy, thus ultimately boosting tax revenue in the long run.

 

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