$700 billion for Health and Human Services in 2008

The U.S. Department of Health and Human Services has released details of the President's FY 2008 budget request to Congress for the department.

The budget proposes total outlays of nearly $700 billion for Health and Human Services, an increase of more than $28 billion from 2007. This figure includes $67.6 billion in discretionary program spending, which is an increase of $95 million over the FY 2007 full year continuing resolution.

The HHS budget proposal reflects fiscally responsible steps to reform and modernize the Medicare program. Funding for Medicare benefits, which will help 44.6 million Americans, is expected to be nearly $454 billion in FY 2008, and increase of $28 billion over the previous year.

The FY 2008 budget includes a comprehensive package of Medicare legislative and administrative proposals that will help strengthen the program's long-term viability. These proposals will encourage efficient payment for services, foster competition and promote beneficiary involvement in health care decisions.

Restraining Medicare spending is a key factor in ensuring that the program will be sustainable for future generations. This package will save $76 billion in legislative and administrative changes over five years and slow the program's growth rate over that timeframe from 6.5 percent to 5.6 percent.

The President's budget continues the successful transformation of the Medicaid program. The unprecedented decline of $200 billion in Medicaid spending over 10 years since the last President's budget is due to the significant reforms implemented by the Deficit Reduction Act and greater collaboration between the states and federal government. Building on this success, the FY 2008 proposal outlines a series of proposed legislative and administrative changes estimated to save $25.7 billion over the next five years, keeping Medicaid up to date and sustainable in the years to come.

The President's budget proposes to reauthorize State Children's Health Insurance Program (SCHIP) for five more years, to increase the program's allotments by $5 billion over that time, and to target SCHIP funds more efficiently to those most in need.

http://www.hhs.gov/