Obama's 2012 Budget Would Create $62 Billion in Medicare Savings

On Monday, President Obama released a $3.7 trillion budget proposal for 2012 that includes changes in health care spending, Politico reports.

The administration estimates that the proposal would reduce the federal deficit by $1.1 trillion over the next 10 years.

It also would create $62 billion in Medicare savings over 10 years (Rogers, Politico, 2/14). The Hill's "Healthwatch" reports that the savings would result from tighter restrictions on Medicare and Medicaid payments and expanded use of generic drugs in federal health programs.

The savings would be used to delay for two years a scheduled 25% cut to Medicare's physician reimbursement rate -- called for by the sustainable growth rate formula -- according to the proposal (Pecquet, "Healthwatch," The Hill, 2/13).