Medicare: FY2008 Budget Issues Page: 2 of 20
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Medicare: FY2008 Budget Issues
Each February, the President submits a detailed budget request to Congress for
the following federal fiscal year, along with projections for the five-year budget
window. The budget informs Congress of the President's overall federal fiscal
policy, based on proposed spending levels, revenues, and deficit (or surplus) levels.
The budget request lays out the President's relative priorities for federal programs,
such as how much should be spent on defense, education, health, and other federal
programs. The President's budget may also include legislative proposals for spending
and tax policy changes. While the President is not required to propose legislative
changes for those parts of the budget that are governed by permanent law, such as
Medicare benefits, these changes are generally included in the budget.
The President's 2008 budget includes Medicare legislative proposals with
estimated savings of $4.3 billion in 2008 and $65.6 billion over the five-year budget
window. The President's budget also includes one Medicare administrative proposal
with estimated savings of $1 billion in 2008 and $10.2 billion over the five-year
budget window, which brings the estimated savings from the total Medicare budget
proposals to $5.3 billion in 2008 and $75.9 billion over the five-year budget window.
Proposals include savings in many of the Medicare payment updates. The
President's budget also includes an automatic reduction to all Medicare payments if
general revenue financing is projected to exceed 45% of total Medicare financing,
under specific conditions. There are no savings from this automatic reduction
proposal in the five-year budget window. The President's budget reflects the passage
of the Tax Relief and Health Care Act of 2006 (P.L. 109-432). Therefore, the
savings proposals included in the budget are based on changes to law after passage
of the act. The current law descriptions provided in this report also reflect changes
made by the act.
Each year, the Congressional Budget Office (CBO) conducts an independent
analysis of the President's budget. This report will be updated when CBO releases
its estimates of savings for the President's proposed Medicare legislation. It will also
be updated to reflect further clarification and detailed information, as it become
available, on the legislative proposals in the President's budget.
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Chaikind, Hinda; Jacobson, Gretchen A.; Hahn, Jim; Morgan, Paulette C.; O’Sullivan, Jennifer & Stockdale, Holly Sue. Medicare: FY2008 Budget Issues, report, February 6, 2007; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc822013/m1/2/: accessed March 20, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.