Obama calls for substantial spending on health reform

The budget outline introduced yesterday by President Barack Obama includes a significant expansion of the health-care system, which would be paid for, in part, by a newly created $634 billion reserve fund that would be developed over the next decade (Source: “Obama Proposes $634 Billion Fund For Health Care,” Washington Post, Feb. 26, 2009).

In what he calls a “very substantial down payment” toward universal coverage, the President’s plan (pdf) calls for capping itemized deductions for those earning more than $250,000 a year, allowing tax cuts for wealthy Americans to expire and cutting payments to insurers, hospitals, doctors and drug manufacturers.

The budget plan also outlines steps the Obama Administration plans to take to reduce health care spending, including potentially reining in spending on Medicare and Medicaid.

Other health spending in the budget outline includes:
• More than  $1 billion for Food and Drug Administration food safety efforts
• More than $6 billion for cancer research at the National Institutes of Health
• $330 million to increase the number of doctors, nurses, and dentists practicing in areas of the country experiencing shortages of health professionals

Obama is planning to host a White House summit on health reform next week.