Blog Roundup: President Obama's budget plan for health care reform
By Hygeia | Thursday, February 26th, 2009The Obama Administration is unveiling its budget today. His remarks, released this morning, regarding health care included:
Because of crushing health care costs and the fact that they drag down our economy, bankrupt our families, and represent the fastest-growing part of our budget, we must make it a priority to give every single American quality, affordable health care. That’s why this budget builds on what we have already done over the last month to expand coverage for millions more children, to computerize health records to cut waste and reduce medical errors, which save, by the way, not only tax dollars, but lives.With this budget, we are making a historic commitment to comprehensive health care reform. It’s a step that will not only make families healthier and companies more competitive, but over the long term it will also help us bring down our deficit.
Yesterday news had already broke about a major componant of the Administration’s proposal. The New Republic‘s Jonathan Cohn reported from the Hill:
Officials from the Obama administration on Wednesday briefed both members of Congress and advocates from the health care community about the budget proposal they’ll unveil formally on Thursday… they are proposing to allocate $634 billion over ten years towards health care reform, the bulk of it to expand insurance coverage. And since that won’t fully fund universal coverage, they propose to work with Congress on finding the remaining money.
At the WSJ Health Blog, Sarah Rubenstein detailed some of the policies expected to be included:
Medicare Advantage: Democrats have been vocal critics of these private plans within Medicare, claiming they’re taxpayer-subsidized profit centers for insurers… The administration is expected to proposed cutting federal payments to insurers that run the plans by requiring them to competitively bid to offer plans.
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Drugs: The generics industry’s trade group tells the WSJ it’s hearing the proposal will set up a regulatory pathway for companies to create generic versions of biotechnology drugs, which currently can’t be made into copycat versions… The administration also wants to curb a practice by makers of traditional branded drugs by which they extend the patent-protected life of existing products by changing them slightly… Finally, Obama wants upper-income seniors to pay more for Medicare drug plans…
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Hospitals: Obama wants to create one bundled Medicare payment to cover both a hospital stay as well as care for the patient for 30 days after release, a change estimated to save $17 billion over 10 years… The administration is also proposing to cut payments for hospitals that routinely readmit patients after they have been discharged. It’s meant to save $8.4 billion over 10 years…
Ezra Klein presented further details about the plan: (more…)






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