The House Budget Committee on March 21 began its markup of a fiscal year 2008 budget resolution that includes “deficit neutral” reserve funds for the State Children’s Health Insurance Program and Medicare improvements. The SCHIP reserve fund provides for up to $50 billion through 2012, while the Medicare reserve fund provides for an unspecified adjustment.
The reserve funds are “placeholders” that allow committee allocations to be adjusted, for example if legislation is passed to expand SCHIP or increase the Medicare reimbursement rate for physicians. However, the legislation must be “deficit neutral.”
The Senate debated proposed amendments to its budget resolution, including one by Sen. Gordon Smith (R-OR) that would raise the federal tobacco tax to fund SCHIP. The Senate resolution includes an SCHIP reserve fund of up to $50 billion. Of that, $15 billion would come from Medicare, although the resolution does not specify which Medicare programs would be cut.
[ via AHA News Now ]
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