Here are eight things to know:
1. The proposal encourages states to expand Medicaid and forces drug companies to disclose the costs of their research and development.
2. To address concerns over the “Cadillac tax,” the administration proposed scaling back by raising the tax’s threshold in areas where healthcare is pricier. Thus, less people would have to pay a 40 percent excise tax.
3. In his plan, President Obama detailed an “aggressive reform agenda,” which would change the way the United States compensates physicians and hospitals. President Obama says the agenda will save the nation more than $180 billion over 10 years.
4. The plan seeks to allot $1.5 billion to combat the opioid epidemic and $500 million in new programs for people with mental illnesses. These two proposals are likely to receive bipartisan support.
5. Despite 19 states refusing to lower the eligibility for Medicaid, the proposal would cover the full cost of Medicaid expansion for three years even if a state misses the initial deadline under the ACA.
6. The Obama administration proposed reducing the number of years that companies have a monopoly over biological drugs from 12 years to seven years. The proposal also impedes companies from reaching “anti-competitive” deals to limit access to generics.
7. Through the budget proposal, Medicaid providers could negotiate for higher-cost drugs.
8. In the proposal, Medicaid would implement a medical loss ratio of 85 percent, which means 85 percent of premiums dollars would be spent on medical care.
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