Ryan Tax Cut Plan: Most savings from low-income programs

Ryan Tax Cut Plan: Most savings from low-income programs

From the Center on Budget and Policy Priorities: About two thirds of the $4 Trillion dollars in savings would come from programs that benefit low-income and moderate-income Americans.

The larger percentage of savings would come from cuts to programs like Medicaid, Pell Grants, food stamps and low-income housing subsidies. This does not include Medicare, which also goes to a large number of low-income Americans. This would account for a proposed $2.9 Trillion dollars in cuts/savings.

The coverage gap in the Medicare prescription drug benefit would be brought back. Obama’s health care law gradually eliminates the so-called doughnut hole. Analysis shows Ryan’s plan repeals that provision.

Medicaid, the federal-state program that covers low-income and severely disabled people, would be converted into a block grant program that gives each state a lump sum to design its own insurance plans. But the poor no longer would have a right under federal law to health care.

Medicare would convert to a system whereby Americans would get a flat payment from the government to use towards buying private insurance. Details aren’t clear how the payment levels would be decided.