The Trump Administration’s Proposed Medicaid Cuts Are Never Going to Happen – Slate Magazine

The answer is that if Congress decides the caps it set were unreasonably stringent, it can vote to loosen them, or to do away with them altogether. That is exactly what Congress has done in the past. In the Balanced Budget Act of 1997, Congress established the Medicare Sustainable Growth Rate (SGR), a measure that was designed to contain future growth in Medicare spending by limiting increases in the federal reimbursements paid to medical providers treating Medicare beneficiaries. If the SGR had been implemented as written, it would surely have yielded massive budget savings. But there was no way that was ever going to happen, as it would have enraged medical providers and, in some cases, jeopardized their ability to deliver medical care to older Americans. As a consequence, Congress regularly stepped in to pass “doc fix” legislation that prevented the SGR from kicking in. Eventually, legislators passed a “permanent doc fix” that killed the SGR for good.

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