Medicaid issues, not Medicare's, get fixes in Biden budget

Medicaid issues are turning up as winners in President Joe Biden’s social budget framework even as divisions force Democrats to hit pause on far-reaching improvements to Medicare

WASHINGTON -- Medicaid issues are turning up as winners in President Joe Biden’s social agenda framework even as divisions force Democrats to hit pause on far-reaching improvements to Medicare.

The budget blueprint Biden released Thursday would fulfill a campaign promise to help poor people locked out of Medicaid expansion across the South due to partisan battles, and it would provide low-income seniors and disabled people with more options to stay out of nursing homes by getting support in their own homes. It also calls for 12 months of Medicaid coverage after childbirth for low-income mothers, seen as a major step to address national shortcomings in maternal health that fall disproportionately on Black women.

But with Medicare, Democrats were unable to reach consensus on prescription drug price negotiations. Polls show broad bipartisan support for authorizing Medicare to negotiate lower prices, yet a handful of Democratic lawmakers—enough to block the bill—echo pharmaceutical industry arguments that it would dampen investment that drives innovation. Advocacy groups are voicing outrage over the omission, with AARP calling it "a monumental mistake.” Some Democratic lawmakers say they haven't given up yet.

The immediate consequence: Without expected savings from lower drug prices, Medicare dental coverage for seniors is on hold, as is vision coverage. The Biden framework does call for covering hearing aids, far less costly. Also on hold is a long-sought limit on out-of-pocket drug costs for Medicare recipients.