Health and human services secretary Kathleen Sebelius announced Wednesday that the US government will spend $1 trillion on Medicaid over the next decade.
The spending is part of a larger effort to create a nationwide single-payer health care system.
Obamacare’s $1,000 annual cap on spending per enrollee was already a big part of the plan.
But now the administration is committing to $1 billion for the first year.
Obamacare was designed to be an affordable and universal health care plan, and the federal government has spent millions of dollars on administrative costs and marketing.
But the US currently spends more than $800 billion on health care, including on private insurance, according to a recent report by the Kaiser Family Foundation.
Now the administration has made a commitment to spend $100 billion over 10 years to help fund a single-payer health care reform.
The total figure is a far cry from the $1-billion figure that President Donald Trump said during the presidential campaign.
He had previously proposed $2.6 trillion for the federal budget.
“This is a big, bold, bold step forward,” Trump said in November, calling the Medicaid expansion a “big win for America.”
“We’ve been looking for a new way forward.
This is a very, very big win.”
The $1B pledge is the largest single-year spending commitment from the Trump administration to date.
According to a report from the Congressional Budget Office, $1bn of that money would be spent on enrollment.
That would cover a total of 15 million enrollees, according a CBO report released in February.
But the $100bn figure is only a start, according the CBO.
There are also several other costs the administration could potentially spend on Medicaid.
In addition to Medicaid spending, the $10 billion spending cap includes $5 billion for “health security” and $2 billion for Medicaid enrollment.
This is also the biggest single-day spending commitment by the Trump White House.
A lot of this is a result of the president’s new healthcare plan, which would cut Medicare payments to hospitals and drug companies, and would leave out some of the costliest items in the ACA.
While $100billion in new spending is a huge chunk of the $2 trillion bill the administration wants to enact, it is not the biggest.
The $1 Billion spending pledge from the Obama administration was $400 billion, according Toensing.