CBO: Obama budget would achieve Medicare and Medicaid savings by cutting provider payments
President Barack Obama
An analysis of President Obama's proposed fiscal 2013 budget found it would lower government spending on Medicare by $276 billion and Medicaid by $66 billion over 10 years.
This would partially be achieved by trimming payments to Medicare providers, according to a report released Friday by the Congressional Budget Office. The administration's budget also would reduce the amount of revenue from taxes on providers that states can use for Medicaid, starting in 2015. The CBO's report also assumes a 27% cut to Medicare physician payments scheduled for January 2013, although Congress regularly passes a “doc fix.”
Observers do not expect the budget — which would raise the deficit to $365 billion in 2013 — to advance in Congress. House Budget Committee Chairman Paul Ryan (R-Wis.) is expected to release his own budget proposal next week.
Click here to read the full CBO analysis.