The President’s Modest Medicare Proposal
Dr. Moffit of the Heritage Foundation has done a great job outlining the changes proposed in President Bush’s 2007 budget. Here are some of the highlights
Proposed a modest $36 billion reduction in the growth of the Medicare budget over 5 years. Medicare spending is projected to be $395 billing in 2007 and grow to $504.4 billing in 2011.
Reduction in the increase is primarily achieved by:
- Administrative and regulatory changes in the way payments are made to medical providers, particularly hospitals, nursing homes, and home health agencies.
- “Quality initiatives” to ensure that patients receive medically appropriate and cost-effective care.
- “Competitive bidding” for clinical laboratory services and certain physician-administered drugs, medical supplies, and equipment. “
- Adjustments to Medicare’s complex pricing system for doctors, hospitals, and other medical providers.
- Stronger cost control provisions.
