Obama Seeks Another $313B in Health Cuts

He wants to reduce Medicare payments to hospitals

By Kevin Spak, Newser Staff

Posted Jun 13, 2009 9:19 AM CDT

(Newser) – In an effort to pay for his ambitious health care plans, Barack Obama today proposed another $313 billion in cuts to government health care spending over the next decade, the Wall Street Journal reports. That brings the total cuts proposed to nearly $950 billion, just shy of the $1 trillion his health plan is expected to cost.

The new proposals would mainly affect hospitals, which could trigger a backlash from the industry, notes the Times. The government would slow pay increases to hospitals, device manufacturers, and others that provide services to Medicare patients. It also would cut subsidies for dealing with the uninsured, whose ranks should dwindle, and reduce Medicare drug payments by asking pharmaceutical companies to “pay their fair share.”

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President Barack Obama meets with Zimbabwe's Prime Minister Morgan Tsvangirai, not shown, Friday, June 12, 2009, in the Oval Office of the White House in Washington. (AP Photo/Haraz N. Ghanbari)

Barack Obama has nearly proposed enough cuts to cover his health care ambitions. (Shutterstock)

President Barack Obama delivers remarks in the Rose Garden of the White House in Washington, Friday, June 12, 2009, about passage of the tobacco legislation. (AP Photo/Ron Edmonds)

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COMMENTS

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Showing 3 of 13 comments

kokuaguy

Jun 14, 2009 12:30 PM CDT

ditto-mucho SPH

luluzz

Jun 13, 2009 9:31 AM CDT

Dream on Dr. Z.... it isn't easy being disabled in this country and it looks like it's only going to get worse for us. MedicOni is so right. In our small town we have only one hospital to cover six towns. We have to EMS or ambulance companies. But the EMTs are so over-worked and under-paid they are all trying to quit. And our emergency room is lined up with gurneys. Sometimes you wait in the hallway up to 5-6 hours waiting to be seen. It's an ugly scene down here at this level of needing help.

luluzz

Jun 13, 2009 9:25 AM CDT

Medicare is better than having no insurance when you get older or are disabled. But the coverage misses a lot of prescriptions. It scares me to hear they are going to reduce money to Medicare... it should lower salaries at the top but like every corporation around it will be those on the bottom (patients) who will be the ones affected.

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Barack Obama • health care costs • hospitals • Medicare • drug companies • universal health care • Medicaid • health care reform

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Obama Seeks Another $313B in Health Cuts