Obama Administration Proposes $340 Billion in Medicare Cuts in Preliminary “Fiscal Cliff” Negotiations | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Obama Administration Proposes $340 Billion in Medicare Cuts in Preliminary “Fiscal Cliff” Negotiations

November 30, 2012
by Mark Hagland
| Reprints

According to news reports on Nov. 28 and 29, President Barack Obama has proposed cutting $340 billion from Medicare spending over 10 years, in his fiscal year 2013 budget, as part of his initial bargaining stance with Speaker of the House of Representatives John Boehner (R-OH) and congressional Republicans, during the so-called “fiscal cliff” negotiations. The $340 billion in Medicare cuts would include avoidable readmissions reduction-related reimbursement cuts; requiring some pharmaceutical manufacturers to pay rebates to the Medicare program in some circumstances; reducing coverage of bad debts that hospitals and nursing homes have failed to collect from patients; and charging higher premiums to high-income Medicare beneficiaries, according to a Nov. 29 article in The New York Times.

Should negotiations now taking place between the White House and congressional leaders not bear fruit by the end of December, a comprehensive set of federal budget cuts would soon go into effect that would impact most areas of the federal budget, under a sequestration agreement hammered out between the major political parties during 2011, under the Budget Control Act of 2011.

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More



Population Health Tool that Provides City-Level Social Determinants Data Expands to 500 Cities

A data visualization tool that helps city officials understand the health status of their population, called the City Health Dashboard, has now expanded to 500 of the largest cities in the U.S., enabling local leaders to identify and take action around the most pressing health needs in their cities and communities.

Trump will Nominate Acting VA Secretary Wilkie for Permanent Position

Just a day after the Department of Veterans Affairs (VA) and Cerner inked their $10 billion EHR (electronic health record) deal, President Trump said he would be nominating Acting VA Secretary Robert Wilkie for the permanent position.

ONC Names API Server Showdown Stage 2 Winner

The Office of the National Coordinator for Health Information Technology (ONC) has named 1UpHealth as the Stage 2 winner of the “Secure API Server Showdown” challenge.

EHNAC Developing Trusted Exchange Accreditation Program

To align with the Trusted Exchange Framework and Common Agreement, the Electronic Healthcare Network Accreditation Commission, a nonprofit standards development organization and accrediting body, is working with other organizations to establish a new Trusted Exchange Accreditation Program.

Lawmakers Demand New VA CIO, Citing “Malign Neglect” on EHR Project

A group of Democratic federal lawmakers, five senators and six members of Congress, are calling out the U.S. Department of Veterans Affairs (VA) for what they call “malign neglect” in the agency’s efforts to achieve electronic health record (EHR) modernization.

Medical Record Access Proves Costly for Some Patients, GAO Report Finds

Federal law requires healthcare providers to give patients access to their medical records, but according to a new GAO report, some patients believe they’re being charged too much to access their records.