Cuts await Medicare insurers

Wall Street Journal, February 26, 2009

As the Obama administration tries to pull together a $634 billion down payment on achieving universal health coverage, it has made clear that it wants the health-insurance industry to foot a large part of the bill. President Barack Obama is expected to propose in his budget blueprint a mix of tax increases and healthcare spending cuts to fund a healthcare agenda. By far the biggest portion of proposed cuts, $177 billion over 10 years, would come from changing the way private-sector Medicare plans are paid by the government, according to a senior administration official.


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