Bush targets health care in new budget
WASHINGTON - President Bush's new budget outlines savings of $90 billion over five years, mainly by trimming projected increases to healthcare providers and some Medicare beneficiaries.
In comments released by the Treasury, Secretary Henry Paulson stated: "When the budget goes up, you will see a number of changes relating to Medicare which are aimed at slowing the growth of these liabilities, slowing the trajectory."
Paulson refused to discuss details of the reductions, but unnamed sources said the savings were expected to hit $90 billion, according to an article that appeared in the Wall Street Journal on Friday.
Holding down costs for government entitlement programs is part of achieving a balanced budget by 2012 and preserving tax cuts that are due to expire in 2010.
In the past, Congress has fought the administration's proposal to slow Medicare and Medicaid programs.