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Obama Accepts $70 Billion Less in Medicare Payment Cuts to Hospitals

Many hospitals are quite happy with the news that the Obama administration has now agreed to decrease its proposed hospital cuts by about $70 billion. Originally the White house was planning to cut Medicaid and Medicare payments to hospitals around the US by about $224 billion over 10 years to aid healthcare reform. However, they now agreed to the smaller target amount of $155 billion over 10 years.

Unfortunately, this deal may only be good news for hospitals. Since President Obama does not want the healthcare reform to add to the deficit, now the White House has to find other ways to get the money to fund it. The healthcare reform is expected to cost more than $1 trillion. Losing this source of funding for the reform puts our country in another $70 billion of debt if other sources are not found.

Obama and the Senate are still struggling with healthcare reform legislation and trying to work out all of the details. A lot of controversy still remains, although some people are hopeful that a bill will be passed by the end of August.

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