President releases FY 2014 budget

By: Michael MacLaren |
Published: April 10, 2013
Author at Assurance Health Care Financial Services

Earlier today, President Obama released his Fiscal Year 2014 budget proposal which outlines proposals to reduce federal healthcare spending by $401 billion over 10 years.

While the administration has consistently supported SGR repeal, this year’s proposal goes further by calling for a period of payment stability to allow time to develop and pilot test new payment models. We do have concerns with some of the proposals included to derive savings, such as:

  • Reducing reimbursement for Part B drugs administered in the physician office setting
  • Excluding radiation therapy, therapy services, and advanced imaging from the Stark law’s in-office ancillary services exception (unless accountability standards are met)
  • Cutting graduate medical education payments

The president’s budget proposal serves as a blueprint for larger budget discussions, has limited details and is nonbinding. Congress is ultimately responsible for passing final budget legislation. We expect a lengthy budget debate this year and will continue to advocate on behalf of our members throughout the process.