Covering Health Policy and Obama’s proposed budget

Obama's budget proposal includes $634 billion for health care

Today Obama presented his budget outline (PDF) to Congress, including a proposal to spend "$634 billion to expand U.S. health care, financing the 'down payment' with increased taxes on wealthy Americans and less government money for some drugmakers and health insurers," according to Bloomberg.

The budget proposal reiterates the president's comments in Tuesday night's speech but does not lay out a specific plan for reform:

"To improve the quality of our health care while lowering its cost, we will make the immediate investments needed to computerize all of America’s medical records within five years while protecting the privacy of patients. This is a necessary step to reducing waste, eliminating red tape, and avoiding the need to repeat expensive medical tests. We also will fundamentally reform our health care system, delivering quality care to more Americans while reducing costs for us all. This will make our businesses more competitive and ease a significant and growing burden middle-class families are bearing."

Funding highlights (PDF, page 67) for the Department of Health and Human Services include:

• Accelerates the adoption of health information technology and utilization of electronic health records.
• Expands research comparing the effectiveness of medical treatments to give patients and physicians better information on what works best.
• Invests over $6 billion for cancer research at the National Institutes of Health as part of the Administration’s multi-year commitment to double cancer research funding.
• Strengthens the Indian health system with sustained investments in health care services for American Indians and Alaska Natives to address persistent health disparities and foster healthy Indian communities.
• Invests $330 million to increase the number of doctors, nurses, and dentists practicing in areas of the country experiencing shortages of health professionals.
• Supports families by providing additional funding for affordable, high-quality child care, expanding Early Head Start and Head Start, and creating the Nurse Home Visitation program to support first-time mothers.
• Strengthens the Medicare program by encouraging high quality and efficient care, and improving program integrity.
• Invests over $1 billion for Food and Drug Administration food safety efforts to increase and improve inspections, domestic surveillance, laboratory capacity and domestic response to prevent and control foodborne illness.

Budget is a directive, not a detailed plan for reform

Ezra Klein of The American Prospect writes that the language in the budget is "a directive. Not a document to win a campaign, but a document to kickstart the congressional process." He outlines the eight principles Obama will adhere to in working with Congress to come up with a plan.

The Washington Post says that "By first identifying a large pot of money to underwrite health-care reform – before laying out a proposal on who would be covered or how – Obama hopes to draw Congress to the bargaining table to tackle the details of a comprehensive plan."

Other coverage

Reuters offers a "Snap Analysis" of the plan and The Wall Street Journal breaks down spending proposals for health care. The Houston Chronicle mentions the effect on insurance for laid-off folks. Reuters looks into Obama's vow to cure cancer. Reuters also says drug makers will be hit by Obama's attempts to lower drug prices and that insurers may be hurt by the government's massive entry into that arena. Drew Altman, president and CEO of the Kaiser Family Foundation, says the number of Americans who feel they and their families will be better off under a new system is key to reform.

Meanwhile, The Washington Post reports that subsidized health insurance programs have trouble enrolling people who are uninsured. "Even when low-cost health coverage is offered, many people fail to take advantage of it. People don't think they need coverage, don't know programs exist or don't have the money to afford even comparatively inexpensive, subsidized programs."

AHCJ president Trudy Lieberman writes for CJR.org that Obama's speech on Tuesday night was "long on rhetoric and short on particulars." She looked to the blogosphere for possible ways to offer health care for all Americans, as Obama has promised. She notes that the concept of mandating health coverage has made a comeback.

Robert Pear of The New York Times writes that Obama "provided no new information about how to cover the uninsured, saying he would work out the details with Congress later this year. But he did propose specific changes to save money, and many of his ideas face opposition from Washington lobbyists and the interests they represent." Pear gets reaction from American Health Insurance Plans, National Association for Home Care and Hospice and the American Medical Association.

Health care in the presidential address, GOP response

In Tuesday night's presidential address, President Obama named "health care" as one of three areas that are critical to the country's economic future. He said the country will invest in electronic health records, new technology to reduce errors and preventive care. He mentioned "comprehensive health care reform" and that he is bringing together " businesses and workers, doctors and health care providers, Democrats and Republicans" to work on the issue.

In response, Louisiana Gov. Bobby Jindal said relatively little about the subject, other than agreeing a solution to the health care crisis is necessary and that Republicans are in favor of "universal care" – but not government-run universal health care.

Obama: Health Policy after the election

AHCJ is gathering resources to track Barack Obama's plans for health care reform, as well as related topics in the new administration, such as appointments to surgeon general, HHS and FDA. Recent articles examine why previous Health Policy efforts have failed, key players in health care reform and steps to increase the efficiency of the health care system. A tip sheet has links to previous coverage as well as contact information for some important sources.