President intends to release a budget tomorrow that creates a 10-year, $634 billion "reserve fund" to partially pay for a vast expansion of the U.S. health system, an overhaul that many experts project will cost as much as $1 trillion over the next decade.If this report is accurate, a $634 billion fund would pay for roughly half of what a fully comprehensive overhaul of the U.S. health care system would cost. It is also notable that some of the $634 billion is reported to come from cuts to what hospitals, physicians, and insurers presently get. We have been fully expecting a $157 billion cut to what Medicare HMOs get but it would seem the docs and hospitals would be in for some pretty big cuts as well to get to $634 billion in savings.
Obama would pay for the expansion by trimming tax breaks for the wealthy and tightening payments to insurers, hospitals and physicians, according to a senior administration official.
Can't wait to see the full budget in the next couple of days.
Looks like another "Orszag" on the way!