News Headlines Article

White House projects $11.1 billion in Medicare pay cuts under deficit law
Modern Healthcare

The Obama administration projected that Medicare will be cut by $11.1 billion next year due to requirements of a deficit-reduction law unless overridden by statute. The 2% cut in the $554.3 billion that Medicare projects to spend on providers and insurance plans in 2013 was required by the Budget Control Act of 2011. The Medicare cuts are part of the $1.2 trillion in 10-year cuts the law required after bipartisan negotiations on a comprehensive and bipartisan deficit reduction plan failed last year.