How Will Project 2025 Affect Medicare?
Medicare has been a crucial resource for millions of Americans for decades. But now, Project 2025 could give this program a major overhaul.
While some experts say these changes will improve the program’s efficiency, others worry that these changes could block access to those who need it most.
So, is Medicare’s future at risk?
Our guide will give you an overview of how Medicare works, Project 2025’s proposed changes, and how it could impact Americans in the future.
How Does Medicare Currently Work?
Medicare has been around since 1965 and has been a lifeline for adults over 65 and those with disabilities. The government currently funds it through taxes, premiums, and the federal budget.
Medicare offers four main services for those who qualify:
- Hospital insurance covering inpatient care, nursing facilities, and home health care
- Medical insurance covering doctor’s visits, outpatient care, and medications
- Medicare Advantage (MA), a private alternative to the traditional public option
- Financial support for prescription medications
As you can see, Medicare gives millions of Americans access to decent healthcare.
However, with an older population and a tighter government budget, Medicare as we know it may not exist in the future unless the government steps in to continue funding it.
Project 2025’s Approach to Medicare
Project 2025 and its supporters are certainly no allies to the current Medicare system. The 900-page report describes the current system as slow, inefficient, and expensive.
To “improve” it, some of their main proposals involve:
- Make Medicare Advantage (MA) the default enrollment option
- Remove many of the current restrictions against physician-owned hospitals
- Create more competition between Medicare Advantage and private healthcare companies
- Repeal the prescription drug “negotiation” program passed under the Inflation Reduction Act
- Crack down on corruption and fraud in the medical industry
These proposals might seem like they could cut costs for everyone involved. But the truth is, most who rely on traditional Medicare will be forced to pay higher premiums with the new system.
The MA program is also known for being wasteful with funds and having an extremely limited network of providers.
By putting more enrollees into this program, Project 2025’s policy will shift the US healthcare system towards a more privatized model that could make it harder for Americans to access the treatment they need.
Who Would Project 2025’s Changes Affect The Most?
If these reforms go through, it could be a massive blow to low-income seniors or adults with disabilities who may not be able to afford other plans.
With 40% of Americans relying on Social Security alone, many struggle to keep up with inflation and pay their bills. A more privatized healthcare system could make it even harder for them to pay premiums and afford out-of-pocket expenses for other services.
For those with other conditions, a more privatized healthcare model might make it harder for them to get the specialized care they need at an affordable price point.
Other Programs Project 2025 Plans To Reform
Medicaid
Medicaid provides healthcare to low-income Americans in need. And much like Medicare, Project 2025 wants to slash its funding and leave the responsibility to the states.
Instead of using federal dollars to preserve it, the government would send each state a fixed amount of funding, or block grants, to cut overall costs.
The new system would also expect recipients to “have a stake in their personal health care,” by imposing strict work requirements. This alone could cut off access to Medicaid to millions of people nationwide.
SNAP Benefits
Besides healthcare, Project 2025 also wants to reform the Supplemental Nutrition Assistance Program (SNAP), which gives financial aid to low-income families to buy food.
Under their system, able-bodied recipients need to work a minimum number of hours to receive their monthly benefits.
Additionally, the program would prevent states from raising the eligibility threshold. In places with higher living costs, like New York or Hawaii, this would leave plenty of recipients without financial support.
The Bottom Line
Project 2025 could drastically change Medicare and other essential social programs.
While many of these policies promise an efficient, less bloated government, you can’t ignore the devastating effects they’d have on millions of Americans who rely on these programs.
Whether these policies pass or not, though, is anyone’s guess. All you can do right now is stay informed and prepare for future changes.
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