Ryan budget cuts Medicaid by $810 billion

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The Ryan budget would also repeal President Obama's healthcare law, whose Medicaid coverage requirements are incompatible with Ryan's proposal to give states flexibility to decide who is covered by the program for low-income Americans.

As expected, the new Ryan budget offers a modified version of his controversial Medicare plan from last year. Whereas last year's plan moved all future seniors into a privatized system, where the government subsidized premium payments, the current plan keeps traditional Medicare as an option. It also has new protections for low-income seniors and restrictions that could keep the traditional plan from being stuck with only the sickest patients.

The new "premium support" proposal is based on a model developed by Ryan and Sen. Ron Wyden (D-Ore.) and long championed by Budget Committee member Rep. Tom Price (R-Ga.).

Despite Wyden's support for a similar plan, Democrats are already pouncing on the new Medicare proposal. A protest is planned by seniors groups at a Tuesday morning speech by Ryan at the American Enterprise Institute.


— Erik Wasson contributed.