$600B in Healthcare Cuts Part of Latest Simpson-Bowles Sequester Fix

Share on Facebook
Within the latest $2.4 trillion deficit-reduction plan floated by president-appointed bipartisan budget watchdogs Alan Simpson and Erskine Bowles is $600 billion in spending cuts to healthcare programs such as Medicare and Medicaid, according to a report by the Wall Street Journal.

The White House has previously drawn the line for healthcare cuts at $400 billion.

The plan set up by Mr. Simpson and Mr. Bowles, a Republican and Democrat, respectively, to avoid $85 billion in automatic cuts — better known as sequestration — effective March 1 would fall above President Barack Obama's mark of $1.5 trillion over the next decade but below Republicans' aim of $4 trillion without new taxes.

The healthcare spending reductions would come from "provider and beneficiary incentives," as well as shrinking provider payments, cost-sharing, raising premiums for the wealthy, reducing drug costs and improving efficiency in healthcare, according to the report.

More Articles on Healthcare Spending:

ACOs Have 3 Fatal Flaws, Experts Say
How Would Sequestration Hit Healthcare?
Obama Pledges 'Modest Reforms' to Medicare in State of the Union

© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

New From Becker's Hospital CFO

Mercy Medical Center to gain physicians due to bankruptcy of private group

Read Now