The White House this afternoon released its report on the forthcoming sequestration. The report, which runs nearly 400 pages, provides a dire warning, saying that the Office of Management and Budget’s findings leave “no question that the sequestration would be deeply destructive to national security, domestic investments, and core government functions” and that “The Administration strongly believes that sequestration is bad policy, and that Congress can and should take action to avoid it by passing a comprehensive and balanced deficit reduction package.”
Among the health care items identified, the report indicates:
- “The National Institutes of Health would have to halt or curtail scientific research, including needed research into cancer and childhood diseases.” The report identifies a sequester percentage of 8.2%, or $2.518 billion.
- Nondefense CDC spending would also be cut by 8.2%, or about $464 million
- Medicare is subject to a 2% reduction limit, for a total of $11.085 billion, which will come from provider payments.
We will continue to monitor and sift through the report and provide information as it becomes available.©2014 Drinker Biddle & Reath LLP. All Rights Reserved