Obama to Reduce Fiscal Deficit by Health Care Savings

Obama in the upcoming budget has proposed savings in the health care sector to bring down the ever growing fiscal deficit. The proposed changes will primarily affect Medicare, Medicaid and other Federal health programs. The Medicare program was set up to aid the aged and Medicaid was designed for the poor.

The plan is to save up to $364 billion over the next decade. The plan will be put into action by reducing payments made to doctors, nurses and healthcare providers. The other means will be to increase costs for wealthier people and cut down on fraud and wastage. The total budget plan is for $3.8 billion. Money will be poured into create jobs, construction of bridges and highways and the plan is to continue to support education through student-aid. Corporations, banks, oil and natural gas and coal companies will have to shell out extra in taxes.

Forecasts for the fiscal deficit are around the $1.33 Trillion mark, the deficit is higher than $1 trillion for the fourth straight year; however the President feels it is a step in the right direction. “This budget is a step in the right direction and provides a roadmap for how we can grow the economy, create jobs and maintain the nation’s security.” Said President Obama in a statement

The proposed health care reform has already kicked up a storm with the The Pharmaceutical Research and Manufacturers of America saying it is “a short-sighted proposition that could destabilize the program and threaten hundreds of thousands of American jobs.”

The new reform will see money being pumped into Centers for Medicare and Medicaid Service, an agency that was designed to work with the states to extend basic health insurance to at least 34 million American without insurance under the Patient Protection and Affordable Care Act. The agency would be given an annual budget of $4.8 billion, a huge part of the money will go into setting up small state-based exchanges, that are expected to be up and running by 2014.

The budget could be a major talking point leading up to the Presidential elections, heath-care reforms are generally a sticking point with senior citizens who make a major bloc of the voters. The Republican Party wasted no time, “The president has failed to offer a single serious idea to save Social Security and is the only president in modern history to cut Medicare benefits for seniors,” said Obama’s rival Mitt Romney.

We will have to wait and see if the issue does affect the numbers in the upcoming election.

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