House bill would protect Social Security, Medicaid, Medicare from automatic spending cuts
The House voted 246-175 on Friday to pass H.R. 1868, which will prevent across-the-board spending cuts under the Pay As You Go (PAYGO) Act of 2010.
“This vote protects our seniors from cuts to the vital programs they rely on in the middle of an economic and public health crisis,” said Second District Congresswoman Elaine Luria, who voted with the majority. “Passing the American Rescue Plan—a comprehensive economic recovery package that provides meaningful relief to Coastal Virginians, schools, and small businesses—will help us defeat the pandemic and rebuild the economy. Congress must now come together to protect vital programs from cuts that will hinder the recovery effort.”
Most significantly, the legislation would protect Social Security, Medicaid, and Medicare from automatic spending cuts.
The cuts under the PAYGO Act are triggered as a result of legislation enacted through the Budget Reconciliation process.
“Across-the-board cuts to Medicare provider funding could have an immediate and lasting impact, including fewer providers participating in Medicare and reduced access to care for Medicare beneficiaries,” wrote AARP Executive Vice President and Chief Advocacy & Engagement Officer Nancy A. LeaMond. “At a time when the Medicare population is growing by 10,000 people each day, cutting reimbursements could discourage health care providers from treating this growing population. Furthermore, reimbursement cuts may lead some plans, such as Medicare Advantage plans and Part D prescription drug plans, to shift costs to patients and charge higher premiums or cost-sharing in future years to make up for the cuts.”