http://www.nytimes.com/2006/02/07/politics/07phealthcare.html Slowing the Growth of Medicare
ROBERT PEAR
President Bush proposes to cut the projected growth of Medicare by $2.5 billion next year and by $35.9 billion from 2007 to 2011, mostly by reducing the annual inflation updates that hospitals and other health care providers receive.
Medicare would still grow rapidly: 7.7 percent a year under the president's budget, compared with 8.1 percent under current law.
Health care providers are already mobilizing a campaign to block the president's proposals. In an election year, they appear to have a reasonable chance of succeeding. They contend that the proposals would hurt many of the 42 million beneficiaries.
Mr. Bush would give hospitals and hospices less than a full inflation update in each of the next three years. He would freeze Medicare payment rates for skilled nursing homes and home health agencies in 2007, then reduce the inflation allowances they would otherwise receive in the next two years.
The White House contends that health care providers can live with the cutbacks if they become more productive. But William D. Novelli, chief executive of AARP, warned that the proposals could lead to "a crisis in quality and access to health care for older Americans."<snip>