Don McCanne: President Obama’s proposal to pay for reform

This entry is from Dr. McCanne’s Quote of the Day, a daily health policy update on the single-payer health care reform movement. The QotD is archived on PNHP’s website.

The White House
June 13, 2009
Paying for Health Care Reform

Health Care Reserve Fund ($ in billions – over 10 years)

$635 – FY 2010 Budget
– $309 – Medicare and Medicaid Savings
– $326 – Revenues

$313 – Additional Medicare and Medicaid Savings
– $110 – Incorporate productivity adjustments into Medicare payment
– $106 – Reduce hospital subsidies for treating the uninsured as coverage increases
– $75 – Pay better prices for Medicare Part D drugs
– $22 – Other

Total: $948
http://www.whitehouse.gov/MedicareFactSheetFinal/

Comment: What does President Obama mean when he says that this is how we’re going to pay for most of his health care reform proposals? Is he referring to savings in the actual costs of health care that would offset the increased spending that would result from expanding coverage? Or is he merely referring to a decrease in government spending that helps with government budgets, but doesn’t really have much impact on our total national health expenditures (NHE)?

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