A technical question concerning the budget

[Angela Shelley]

I have a technical question concerning the budget.

http://news.yahoo.com/s/ap/20080204/ap_on_go_pr_wh/bush...

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON - President Bush unveiled a $3.1 trillion budget proposal on Monday that supports a sizable increase in military spending to fight the war on terrorism and protects his signature tax cuts.

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The budget proposal, which shows the government spending $3 trillion in a 12-month period for the first time in history, squeezes most of government outside of national security, and also seeks $196 billion in savings over the next five years in the government's giant health care programs — Medicare for the elderly and Medicaid for the poor.

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The 6 percent overall increase in spending for 2009 reflects a continued surge in spending on the government's huge benefit programs for the elderly — Social Security and Medicare, even with the projected five-year savings of $196 billion over five years. Those savings are achieved by freezing payments to hospitals and other health care providers.


Does that mean that the government will save money by not paying its bills?

[wtmusic]

1. Doesn't everyone?

Now whether it's ethical or not is another story...

[CC]

2. Means it doesn't matter how much

it really cost to provide care the government will only pay a fraction of that cost and is not going to raise that amount. Forget changing it so Medicare can negotiate drug prices like every insurance company in the country and most other government agencies. As for Medicaid if they don't raise what they pay the doctors then fewer doctors will accept it. Great way to disband the program. Make it too costly for doctors to provide the service then say it isn't working because no one can get care with it.
Dental care under medicaid is almost nonexistent already because the do not pay enough to cover the cost of supplies used.

[Angela Shelley]

3. Thanks for the details, CC