The $20 billion Phoenix Childrens hospital bill that the House passed in early April is the first significant step in President Donald Trump’s attempt to reform Medicare and Medicaid in a way that can benefit the tens of millions of Americans who rely on the programs.
The legislation would help close the budget deficit and end the health care “death spiral,” where rising costs lead to people losing coverage.
It would also allow states to negotiate higher rates for hospitals that provide health care services, including some of the country’s largest.
The House’s bill, passed on May 13, is a compromise that avoids a showdown over Obamacare’s expansion of Medicaid in states with high costs.
In some cases, the legislation would also let states lower their Medicaid eligibility thresholds for Medicaid and other government-funded programs.
Republicans are still seeking to repeal and replace the Affordable Care Act, or Obamacare, with a new bill that would repeal the entire law.
But Democrats have a clear agenda on Medicaid and the other programs under the Affordable Act, and they are eager to see the bill passed.
“There is a lot of anger out there right now,” House Democratic leader Nancy Pelosi of California said last week.
“It’s a very good time to come to the table, to start to discuss these issues and get to a compromise.”
The Senate passed its version of the bill, which has not yet been sent to the White House, in early May.
In the House bill, the federal government would be required to cover about 85% of the cost of all hospitalizations and other medical treatments for children and adults with incomes up to 133% of poverty, or about $18,500 for a family of four.
That’s $2,300 per person per month, which is less than the average household income for a person of the same age.
The Medicare-for-all program would be expanded to include the cost for hospitalizations for children with incomes between 100% and 400% of that poverty level, or $34,000 for a household of four, according to a report by the Congressional Budget Office.
The federal government also would pay a higher percentage of the costs for children under age 18 with incomes under $7,250, up from 30% for older children.
The Senate’s version of Medicaid also would cover about 83% of all the costs of pediatric care and services for the uninsured and underinsured.
The Congressional Budget Service estimated that about 20 million people would lose coverage under the Senate bill.
The bill also calls for Medicaid to pay more to hospitals to pay for treatment of chronic illnesses.
“We’re not going to have this spiraling cost of care that we’ve seen in our country,” House Speaker Paul Ryan said at the time.
“And so we have to be realistic.
And we have got to get this right.
We have to get it done in a sensible way.”
The Congressional budget office has estimated that, by 2026, the expansion of the Medicaid program would cost the federal treasury $5.5 trillion, or more than $2.2 trillion.
Medicare is a program for people who receive Medicare benefits through a private health plan.
The program has about 23 million beneficiaries, or 2.3 million for every American.
The number of beneficiaries will fall to 22.2 million by 2027 under the House and Senate versions, the CBO said.
The CBO also estimates that the Medicare program will cost $1.7 trillion by 2032.
The White House says it will keep the Medicaid expansion in place while the House passes its bill.
That means the federal debt would remain at about 100% of GDP and that the U.S. will pay a larger share of its health care bill to the states than it does now.
The Medicaid expansion will cost about $1,700 per enrollee per year, according the Congressional budget website.
The expansion of health care is currently in effect in 14 states, with more states in the works.