Obama’s 2012 Budget Would Create $62 Billion in Medicare Savings
The administration estimates that the proposal would reduce the federal deficit by $1.1 trillion over the next 10 years.
Obama's proposal includes $1 billion in spending increases for NIH. In addition, the proposal provides $8.7 billion for Global Health and Child Survival programs.
It also would create $62 billion in Medicare savings over 10 years (Rogers, Politico, 2/14). The Hill's "Healthwatch" reports that the savings would result from tighter restrictions on Medicare and Medicaid payments and expanded use of generic drugs in federal health programs.
The savings would be used to delay for two years a scheduled 25% cut to Medicare's physician reimbursement rate -- called for by the sustainable growth rate formula -- according to the proposal (Pecquet, "Healthwatch," The Hill, 2/13).
Lobbyists said the proposal does not contain any health care-related "surprises," because the federal health reform law already includes spending alterations (Millman/Pecquet, "Healthwatch," The Hill, 2/13).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.