Blog | Tuesday, February 15, 2011

QD: News Every Day--President's budget proposes two-year doc fix

President Barack Obama's 2012 budget proposes higher physician Medicare reimbursement for two more years, just one part of a much larger plan to lower the deficit by $1.1 trillion over 10 years. The proposal, which is actually one of a series of delays to a 25% pay cut, would be offset by around $62 billion in spending restrictions by Medicare and Medicaid, and using more generic drugs in federal health programs.

According to the White House release, "The Budget goes further by proposing to continue the current payment levels and offset the costs for the next two years with specific health savings and assumes sustainable growth rate relief in future years will be fully offset, consistent with recent congressional action. The Administration is committed to working with the Congress to achieve permanent, fiscally responsible reform and to give physicians incentives to improve quality and efficiency, while providing them with predictable payments for the care they furnish to Medicare beneficiaries."

The President's goal is to halve the federal budget deficit by the end of his first term in office. Republicans said they were "unimpressed" and vowed to push for deeper spending cuts and lower taxes than the President proposed.