Panel proposes healthcare spending cuts in debt reduction proposal

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The Bipartisan Policy Center released a debt reduction proposal that includes several healthcare-related spending cuts.

Some of the panel's proposed cuts include increasing Medicare Part B premiums by 25% to 35% of program costs, bundling Medicare payments for post-acute care into the payment for in-patient care, removing barriers to managed care options for dual-eligible Medicare and Medicaid beneficiaries, and slowing Medicaid cost growth by one percentage point per year, according to the proposal. The recommendations are the product of a task force co-chaired by former Senate Budget Committee Chairman Pete Domenici (R-NM) and former White House budget director Alice Rivlin.

The Bipartisan Policy Center's proposal is the second such proposal to be released in as many weeks. The National Commission for Fiscal Responsibility and Reform, which was created by an executive order from President Obama February, released a report last week. That report's recommendations included accelerating home health care cuts and putting caps on federal Medicaid spending for long-term care.