President Bush’s budget for FY08--to be released Feb. 5--will contain several “incremental changes” in federal healthcare programs, including initiatives to slow the estimated 7% annual growth of Medicare spending, reports an article in the January 26 issue of The Wall Street Journal. In an interview with the Journal, Treasury Secretary Henry Paulson said, “When the budget goes up, you will see a number of changes relating to Medicare which are aimed at slowing the growth of these liabilities, slowing the trajectory.” Although Paulson declined to give details, the Journal says the budget would trim $90 billion in Medicare spending over five years, primarily by paying providers less.
