White House Deficit Reduction Proposal Targets Medicare

Margaret Dick Tocknell, for HealthLeaders Media , April 14, 2011
  • Improve patient safety through the Partnership for Patients, a public-private partnership focused on preventing patients from getting injured or sicker while they are in the hospital and helping patients heal without complication. Achieving the initiative's goals means more than 1.6 million patients will recover from illness without a preventable complication and costs will be reduced by up to $50 billion in Medicare and billions more in Medicaid over the next 10 years.
  • Cut unnecessary prescription drug spending by leveraging Medicare's purchasing power and by implementing management of high prescribers and users of prescription drugs.
  • Reduce abuse and increase accountability in Medicaid and Medicare, recover erroneous payments from Medicare Advantage, and establish upper limits on Medicaid payments for durable medical equipment.

In addition to the healthcare cuts, the president proposed a reduction in domestic spending to save $750 million; additional efforts to identify waste in the defense department budget; and to reduce spending in the tax code by not renewing the tax cuts for the wealthiest Americans.

Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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