The Republican health-care bill that passed the House on Wednesday would gut the Medicare program for the elderly and would give tax credits to individuals to buy private insurance.
“This legislation will lead to seniors getting a smaller and smaller share of their benefits, and that is not what our Medicare program is all about,” House Minority Leader Nancy Pelosi, D-Calif., said in a statement.
The bill would slash federal funding for Medicare and Social Security, including $5 trillion over the next decade.
Under the legislation, Medicare payments would be capped at 10 percent of the cost of a family of four, down from 12 percent under current law.
That would mean that the federal government would pay the bulk of the bills for Medicare recipients, including seniors, who make up about 20 percent of recipients.
The House bill would also eliminate the Medicare Advantage program, which pays for private insurance plans that cover older Americans with health problems.
The legislation would also give tax breaks to individuals and corporations to buy health insurance, including for seniors.
Republicans have long pushed the bill to increase health care costs for the middle class and lower health care coverage for the poor.
It would cut $5.4 trillion from Medicare and $2.6 trillion from Medicaid over the coming decade, the CBO said.
The CBO expects the bill will add $3 trillion to the deficit, which could lead to higher taxes.
The nonpartisan Congressional Budget Office has estimated that the legislation will increase health-insurance costs for millions of Americans and cut tax revenue for many.
The Republican proposal would end Medicare as we know it, replacing it with a voucher program for Medicare Advantage plans that would give private insurance coverage to individuals with pre-existing conditions.
Under Obamacare, the program was known as “Medicare for All.”
Under the Senate plan, the same program would be renamed “Medicaid Expansion.”
Under this new proposal, Medicaid would be expanded to cover people with pre or milder conditions, including people with cancer or diabetes.
The Congressional Budget Center estimates that the bill would cause an additional $5,500 per enrollee for each Medicaid recipient.
Democrats and Medicaid advocates have argued that such changes would increase access to care for people with serious health conditions and lower premiums for the program.
Democrats have also argued that the current Medicaid expansion program will be unable to cover all of the people who need care and that it will lead many Americans to pay more out of pocket for their health care than they would for private health insurance.
The Senate bill also would cut funding for the Supplemental Nutrition Assistance Program, which provides food stamps to low-income families.
Under current law, SNAP benefits are distributed on a sliding scale.
Under Trump’s plan, SNAP recipients would lose their food assistance and be cut off from benefits in 2024, 2021 and 2026.
The Trump plan also would eliminate SNAP payments to states that expand Medicaid, a move that has been criticized by Democrats and some Republicans.
The GOP bill also eliminates the Federal Housing Administration’s Affordable Housing Choice Program, also known as HOME Grants.
Under Obama, HOME Grants were designed to help low- and moderate-income Americans purchase homes.
But the program has been underfunded, with less than 10 percent in use nationwide.
The U.S. Department of Housing and Urban Development says the program is now operating at a deficit of $2 billion a year, and the Trump plan would take $3 billion from the program, a cut of nearly two-thirds.
The federal government currently provides $5 billion per year in HOME Grants to states and localities to help homeowners afford their homes, but Trump’s proposal would eliminate the program altogether, and would eliminate its funding entirely for ten years.
The Affordable Care Act requires states to use a certain percentage of their home-buying dollars to help pay for health insurance premiums for people 65 and older.
Under a bill authored by House Speaker Paul Ryan, the federal money would be redirected to the states to help them pay for premiums for their older, more vulnerable residents.