President Obama’s proposed $3.6 trillion FY 2010 budget would provide $879 billion for the Department of Health and Human Services, an estimated $63 billion increase over FY 2009, announced HHS as details of the President’s budget were released. The budget also establishes a healthcare reserve fund of $635 billion over 10 years to finance health reform, funded by new revenue and by savings from Medicare and Medicaid. “This budget sends a clear message that we can’t afford to wait any longer if we want to get health care costs under control and improve our fiscal outlook,” said HHS Secretary Kathleen Sebelius.
The proposed budget would invest $311 million in programs to prevent fraud and waste within Medicare and Medicaid, for an estimated $2.7 billion in savings. It also includes over $1 billion in funding to increase the number of health care workers, especially in underserved areas, $354 million to reduce health disparities, $584 million to help prepare for and treat pandemic flu, $4 billion for the Indian Health Service, and $511 million for the FDA—the largest increase ever requested—with $259 million devoted to food safety efforts.
Obama’s budget, however, doesn’t address how the country will reduce the federal deficit, and new spending will far exceed the savings projected from the 121 programs the Administration has earmarked to be eliminated or reduced, reports The Wall Street Journal. Republicans were also dismissive of Obama’s belt-tightening. “I don’t see any tough choices being made,” says Senator John Cornyn (R-Tex.)
