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HHS FY2015 Budget in Brief

Centers for Medicare & Medicaid Services Centers for Medicare & Medicaid Services (CMS): Overview

The Centers for Medicare & Medicaid Services ensures availability of effective, up-to-date health care coverage and promotes quality care for beneficiaries.

CMS Budget Overview

(Dollars in millions)

Current Law 

2013

2014

2015

2015 */- 2014

Medicare /1

497,800

512,464

521,569

+9,105

Medicaid

265,392

308,440

331,440

+23,000

CHIP

9,483

10,289

10,611

+322

State Grants and Demonstrations

517

749

673

-76

Private Health Insurance Programs

3,469

3,813

15,505

+11,692

Center for Medicare and Medicaid Innovation

656

1,054

1,444

+390

Total Net Outlays, Current Law

777,317

836,809

881,242

+44,433


 

Adjusted Baseline 

2013

2014

2015

2015 */- 2014

Prevent Reduction in Medicare Physician Payments

6,180

13,657

+7,477

Total Net Outlays, Adjusted Baseline

777,317

842,989

894,899

+51,910


 

Proposed Law 

2013

2014

2015

2015 */- 2014

Medicare 

365

-2,365

-2,730

Medicaid 

175

4,521

+4,346

CHIP

10

+10

State Grants and Demonstrations

25

+25

Private Health Insurance Programs

Program Management

433

+433

HCFAC Investment 

378

+378

Total Proposed Law

540

3,002

+2,462

Total Net Outlays, Proposed Law /2

777,317

843,529

897,901

+54,372

Savings from Program Integrity Investments /3

-551

-551

Total Net Outlays, Proposed Policy

777,317

843,529

897,350

+53,821


 

1/ Current law Medicare outlays net of offsetting receipts.

2/ Total net proposed law outlays equal current law outlays plus the impact of proposed legislation and offsetting receipts. 

3/ Includes savings not subject to PAYGO from additional investments in HCFAC above savings already assumed in current law. Includes the net impact of HHS and the Social Security Administration program integrity investments on Medicaid.

CMS Programs and Services

The FY 2015 Budget estimate for the Centers for Medicare & Medicaid Services (CMS) is $897.3 billion in mandatory and discretionary outlays, a net increase of $54.3 billion above the FY 2014 level. This request finances Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), private health insurance programs and oversight, program integrity efforts, and operating costs. The Budget continues CMS’s work to implement the Affordable Care Act by improving health care for tens of millions of Americans through comprehensive insurance reforms, enhanced quality, and the provision of coverage for those previously without access to it. The Budget proposes additional targeted reforms to Medicare and Medicaid that are projected to save $414.5 billion over the next decade. These reforms will improve the long term sustainability of Medicare and Medicaid by increasing the efficiency of health care delivery without compromising the quality of care for the elderly, children, low income families, and people with disabilities.

CMS FY 2015 Net OutlaysBudgetary Request

Medicare: The Budget includes projected Medicare savings of $407.2 billion over 10 years, including proposals to improve payment efficiency across providers and increase the value of the care that is provided to Americans.

Medicaid and CHIP: The Budget includes $7.3 billion in Medicaid savings and $345 million in CHIP investments over 10 years to make Medicaid and CHIP more flexible, efficient, and accountable. The Budget extends two important programs within Medicaid: the Transitional Medical Assistance program and Medicare Part B premium assistance for low income Medicare beneficiaries. In addition, the Budget, as part of the Workforce Initiative, extends both the rate increase for Medicaid primary care providers, as well as flexibilities to facilitate enrollment of Medicaid and CHIP-eligible children.

Program Integrity: The Budget includes a $403 million mandatory investment in HCFAC and the Medicaid Integrity Program in FY 2015, as part of a multi year investment to enable HHS and the Department of Justice to detect, prevent, and prosecute health care fraud. Additionally, the Budget proposes $25 million in new discretionary HCFAC funding to support program integrity activities in private insurance, including the Health Insurance Marketplaces. These targeted investments will save an estimated $7.7 billion over 10 years. The Budget also proposes a series of new authorities to strengthen program integrity oversight. Of the total Medicare and Medicaid savings, program integrity legislative proposals yield $1 billion in savings over 10 years.

Discretionary Program Management: The Budget for Program Management enables reforms in health care delivery while continuing to support the ongoing Medicare, Medicaid, and CHIP programs in CMS, as well as the recently implemented Health Insurance Marketplace. The request also accommodates substantial increases in CMS workload because of demographic trends and program changes driving higher Medicare and Medicaid enrollment and implements responsibilities assigned in the Affordable Care Act and other legislation related to Medicare, Medicaid, and CHIP. At the same time, the Budget reflects significant operational savings which result from CMS more efficiently serving beneficiaries.

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