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White House Issues Report Detailing 2013 Sequester Cuts

Posted on 9/18/2012 by NTOCC ® in Public Policy Updates

Last week, a White House report was released detailing the Obama administration's plans to enact deep budget cuts mandated by last year's deficit deal was released today, a week later than originally anticipated. The 394-page report details what will happen next year if Washington fails to act to avert roughly $100 billion automatic defense and domestic spending cuts scheduled to begin on January 2.

With regard to healthcare, Medicare providers would see about $11 billion in cuts (as you’ll recall, Medicare cuts were capped at 2% for providers); the National Institutes of Health would lose about $2.5 billion;  and the Agency for Healthcare Research and Quality would lose about $29 million. Medicaid is specifically excluded from the automatic cuts. Stakeholders are still hopeful that Congress and the White House can come up with a way to avoid the cuts, which is unlikely to happen unless they are able to find a mutually agreeable way of offsetting the spending reductions with other pay-fors, or by amending the law that triggered the cuts.  No action will come before the November elections, however, and the outcome of the election will undoubtedly have some effect on what any agreement would look like.

Click here for the full White House Report.