President’s Deficit Reduction Proposal and Health Care

President’s Deficit Reduction Proposal and Health Care

Monday (9/19/), President Obama released a $4 trillion deficit and debt reduction plan.  A fact sheet about the proposal is available online. As it relates to health care, the President made it clear that he is opposed to taking from Medicare benefits, although the proposal calls for $248 billion in Medicare savings largely “from overpayments.” Examples of Medicaid provisions include changing to a single Federal match rate, limiting DME reimbursement, changing the method of Disproportionate Share Hospital allotments, monitoring patient prescription drugs use, and limiting provider fees as State match mechanisms.  Other health provisions include items such as scaling back the Prevention and Public Health Fund, reducing from twelve years to seven years the period of allowed brand name prescription drug exclusivity, and accelerating the timeframe for allowing “State Innovation Waivers.”