Main Article Sidebar: Bush Administration’s Healthcare Priorities
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	In a further curb on Medicare spending growth, the President’s budget proposes a hard trigger to cap outlays when projected general revenue funding exceeds 45% of the program’s financing. For example, provider payments would be reduced 0.4% annually until funding was back under the target, according to HHS budget documents.

Sidebar: Bush Administration’s Healthcare Priorities

• Establish a standard tax deduction for those who purchase private health coverage. Families with coverage would not be subject to payroll or income tax on $15,000 for premium costs; for individuals, the limit would be $7,500. Those who have employer-sponsored coverage whose value exceeded the limits would be subject to payroll and income tax on the difference.
• Support state efforts to get more uninsured to purchase private coverage through a new HHS-run Affordable Choices initiative, using federal dollars now targeted to hospitals and other safety net providers to cover care in areas with a large number of uninsured.
• Slow the rate of spending growth in Medicare largely by reducing provider payment updates, or in the case of physician fees, assuming a projected 8% cut scheduled for 2008 under current law.
• Expand health savings accounts (HSAs). These are tax-free accounts used to pay for routine medical expenses and linked to a high-deductible policy for catastrophic costs.
• Create association health plans so small businesses can insure their workers at favorable discounts that big businesses get.
• Reduce medical errors and improve patient safety with better health information technology and e-health personal records.
• Enact medical malpractice reform to cap jury awards and curb “frivolous” lawsuits.
• Promote transparency in healthcare pricing and quality of care to empower patients as “smart shoppers.”

February 12, 2007 - Table of Contents

NIR February 12, 2007 (full PDF issue)

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