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Second Opinion

Learn about policy issues important to medical schools and teaching hospitals, with Executive Vice President Atul Grover, M.D., Ph.D.

Washington Highlights

OMB Releases Mid-Session Review

July 12, 2013—The White House Office of Management and Budget (OMB) July 8 released its annual Mid-Session Review, updating the administration’s budget estimates as a result of legislative, economic, and other changes that have occurred since the president’s FY 2014 budget was released in April [see Washington Highlights, April 12].

OMB now projects the federal budget deficit for FY 2013 will be $759 billion.  This is $214 billion less than the budget estimate released in April.  OMB projects that expenditures in FY 2013 will be $149 billion less than the April estimate. The slower-than-expected spending across a range of discretionary and mandatory programs is due, in part, to the across-the-board cuts mandated by the Budget Control Act of 2011 (P.L. 112-25).

OMB projects that economic and technical changes will reduce outlays for Medicare by $2 billion in 2013, but increase spending by $31 billion over the next 10 years, compared to the April estimates. Medicare Parts A and D outlays will increase substantially over the next 10 years, while Part B will decrease. The Part A spending increase is primarily a result of upward revisions to Medicare Advantage enrollment, as well as other technical changes.

The decrease in Medicare Part B spending is primarily due to increases in premium receipts and receipts from provider payment adjustments related to health information technology programs. The increase in spending for Medicare Part D is due mostly to higher drug spending and revised enrollment assumptions compared to the April budget estimate.

OMB also notes that Medicaid spending will be $8 billion higher in FY 2013 and $123 billion higher over the next decade relative to the April estimates, primarily from higher than projected benefit payments in FY 2013.

Contact:

Dave Moore
Senior Director, Government Relations
Telephone: 202-828-0559
Email: dbmoore@aamc.org

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For More Information

Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806
Email: jkleinman@aamc.org