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Morning Briefing

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Wednesday, Feb 10 2016

Full Issue

Obama Leans On Health Care Savings, Targets Opioid Abuse And Cancer In $4.15 Trillion Budget

The Department of Health and Human Services's funding would bump up to $1.1 trillion and the National Institutes of Health would get $33.1 billion. The president also proposes deep health program cuts to save $375 billion over the next 10 years.

President Obama on Tuesday sent his final annual budget proposal to a hostile Republican-led Congress, rejecting the lame-duck label to declare that his plan 鈥渋s about looking forward,鈥 with new initiatives that include $19 billion for a broad cybersecurity plan. Mr. Obama鈥檚 proposed 10-year savings would push deficits down again for a couple years and offset costs of the president鈥檚 proposed initiatives. Then deficits would begin increasing again with the retirement and health costs of aging Americans. (Calmes, 2/9)

Spending for the Department of Health and Human Services would increase to $1.1 trillion under a proposal that would add large mandatory expenditures for cancer research and fighting drug addictions while slightly decreasing the department鈥檚 discretionary programs. The budget furthers the administration鈥檚 efforts to move toward new payment methods in Medicare, including a new competitive bidding system for private Medicare Advantage health plans. (Goldstein, 2/9)

President Barack Obama proposed a record $4.1 trillion budget on Tuesday. Here's a look at each agency and department. ... [Department of Health and Human Services is] up 3 percent. Responding to an epidemic of heroin addiction and abuse of prescription painkillers, Obama's budget would provide $1 billion in new funding over the next two years for states to help more people get and complete treatment. The money would be allocated to states based on the severity of the epidemic and the strength of their strategy. The budget also includes $500 million in new funding to increase access to treatment for people with serious mental health problems. (2/9)

The Obama administration stopped short of writing a detailed prescription for its signature health law into the president鈥檚 final budget, but called for growth for the nation鈥檚 premier agency for biomedical research for the first time in a decade. In the fiscal 2017 budget proposal, widely seen as a template for a Democratic successor, officials stuck to modest recommendations for the Affordable Care Act aimed at encouraging more states to expand their Medicaid programs as part of the law, and tweaking its so-called 鈥楥adillac tax鈥 on high-cost health plans. (Radnofsky and Burton, 2/9)

Some high-earning partners in hedge funds, private-equity firms and other businesses organized as so-called pass-throughs would pay a 3.8 percent health-care income tax under President Barack Obama鈥檚 2017 budget request. The proposal would extend a 鈥渘et investment income tax鈥 for Medicare that鈥檚 been in place since 2013 to taxpayers who have successfully characterized their income in ways the tax doesn鈥檛 reach, according to Obama administration officials. Combined with another provision, which is designed to require more business owners to pay self-employment taxes, the change is projected to raise $271.7 billion over the next decade. (Browning, 2/9)

The CDC is seeking $15 million in new funding to improve health and wellness for Native Americans and $30 million in mandatory funding for suicide prevention. The latter is part of the administration鈥檚 proposal to boost federal mental health spending by $500 million over two years to improve access to care and prevent suicides. ... Funding for Vice President Biden鈥檚 cancer 鈥渕oonshot,鈥 advances in precision medicine and research on the complexity of the brain highlight the president鈥檚 $33.1 billion proposed 2017 budget for the National Institutes of Health. About $680 million would expand clinical trials to include more minorities and others who suffer from higher cancer rates. (Sun and Bernstein, 2/9)

President Barack Obama proposed $375 billion in spending cuts to U.S. health programs in his fiscal 2017 budget, including deep reductions to rates the U.S. pays drugmakers for their products, and changes to how doctors and hospitals care for patients. The proposals are part of the $4.1 trillion budget that the Obama administration is proposing, which starts Oct. 1. Some items -- like cuts to drug spending under Medicare -- have been proposed before. With a Republican-controlled Congress, it鈥檚 unlikely that many, or any, of them will become law. The proposed savings would be realized over 10 years. (Tracer, 2/9)

"The budget that we鈥檙e releasing today reflects my priorities and the priorities that I believe will help advance security and prosperity in America for many years to come," President Barack Obama told reporters at the White House. "It adheres to last year鈥檚 bipartisan budget agreement. It drives down the deficit. It includes smart savings on health care, immigration, tax reform." (Korte, 2/9)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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