HHS releases proposed 2013 budget
The fiscal year 2013 U.S. Health and Human Services budget strives to make wise investments while being fiscally responsible, HHS officials said yesterday during a live web broadcast announcing its budget proposal.
“This budget also recognized our solemn responsibility to safeguard tax payer dollars and to make the most of every investment by spending wisely,” said Bill Corr, HHS’ deputy secretary during his opening remarks on Monday.
HHS’ proposed budget is composed of $941 billion in outlays; 56 percent is for Medicare, 30 percent for Medicaid and 8 percent for discretionary programs.
The budget request includes more than $2.1 billion in terminations and reductions, including a $452 million cut to the Low Income Home Energy Assistance Program, a $177 million cut to the Children’s Hospital Graduate Medical Education Payment Program and a $327 million cut to Community Services Block Grants as well as the elimination of the Preventive Health and Health Services Block Grant.
“In many areas we made cuts because our nation’s fiscal health and tight budget times demand action,” said Corr. “Our budget helps reduce the deficit by $366 billion over 10 years, almost all of which comes from reforms from Medicare and Medicaid. These are significant but they are carefully crafted to protect beneficiaries.”
The proposed savings of $358.5 billion over the next decade in Medicare and Medicaid would come from changes such as aligning Medicare drug payments with Medicaid policies for low-income beneficiaries; realigning payments for post-acute care providers such as long-term care hospitals and skilled nursing facilities; gradually reducing payments to teaching hospitals for the indirect costs of medical education; introducing a home health copayment for new Medicare beneficiaries; and prohibiting brand and generic drug companies from delaying the availability of new generic drugs and biologics.
On the investment side, the budget requests $1 billion to continue implementing the Affordable Care Act; $2 billion for the Administration on Aging to help seniors remain independent; $599 million for effectiveness research; and more than $8 billion for the Head Start program.
“Investing in healthcare, early education, cutting edge medical research and our other priorities requires resources and that means that we have to set priorities,” said Corr. “We have to make difficult trade offs and ensure that we use every dollar wisely. Our budget makes those tough choices helping to reduce the deficit even while we invest in areas critical to our nation’s future.”
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