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HHS Budget Puts Reform First

by Barbara Kram, Editor | May 11, 2009
HHS
In its budget proposal for FY 2010, the Department of Health and Human Services makes strides toward controlling the skyrocketing costs of health care by cutting waste and fraud from Medicare.

Citing the rapidly escalating cost of health care in this country and the enormous pressures that health care costs are putting on our economic future, Health and Human Services Secretary Kathleen Sebelius highlighted several key reforms in President Obama's 2010 HHS budget.

"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 Secretary Sebelius. "Investing in health reform today will help bring down costs tomorrow and ensure all Americans have access to the quality care they need and deserve."

The 2010 budget establishes a health care reserve fund of $635 billion over 10 years to finance health reform that brings down costs, improves quality, and assures coverage for all Americans. The reserve is funded by new revenue and by savings from Medicare and Medicaid.

In addition to improving efficiencies and bringing down costs in Medicare and Medicaid through health reform, Sebelius also highlighted increased funding for a Medicare Integrity Program that will help fight fraud and abuse and crack down on anyone who tries to cheat the system.

"We estimate that for every $1 we spend to stop fraud in the system, we save $1.55," said Sebelius "The President's budget lays out funding for anti-fraud efforts over five years that we estimate could save $2.7 billion by improving overall oversight and stopping fraud and abuse within the Medicare Advantage and Medicare prescription drug programs."

Quality and access to care are also critical elements of the President's reform plan. The President's 2010 budget increases access and improves the quality of care for rural Americans and includes a historic commitment to health care for Native Americans. The budget also calls for over $1 billion in funding to increase the number of nurses, doctors, and health care workers in this country, especially in areas that are traditionally underserved, and includes funding to help eliminate health disparities.

As the country and world face an outbreak of a novel H1N1 virus, and leaders from every level of government, the private sector and both sides of the aisle have come together to respond, Sebelius also highlighted important provisions in the President's budget that will protect public health. The budget sets aside $584 million to help prepare for and combat pandemic flu and increases funding for the Food and Drug Administration (FDA) to help ensure the safety of our food and medicine.