Federal Waste Initiative Would Save Taxpayers $2 Billion

New steps being taken by the Obama administration will save taxpayers more than $2 billion over the next five years, said Vice President Joe Biden on Wednesday.

Biden, who was tapped by President Obama this past June to oversee a government-wide effort to cut down on waste, said the cuts would mainly target the public healthcare sector.

“Today’s announcements…show that we can make our government more efficient and responsible to the American people,” Biden said. “If we’re going to spur jobs and economic growth and restore long-term fiscal solvency, we need to make sure hard-earned tax dollars don’t go to waste.”

According to the White House, a provision within the Affordable Care Act known as the Medicaid Recovery Audit Contractor Program would limit fraud by $2.1 billion between now and 2016 by targeting improper payments to beneficiaries. $900 million worth of savings would be doled out to states.

“We simply can’t afford to see even one penny of our health care dollars wasted and expanding this program will help us reach that goal,” said Health and Human Services Secretary Kathleen Sebelius.

Biden, who summoned cabinet officials to the White House this morning to review anti-waste plans, also announced a new effort being spearheaded by the Labor Department to minimize wasteful spending on unemployment benefits. The agency, which launched a new website that tracks improper payments on a state-by-state basis, also awarded $192 million to 42 states to improve their way of handling and distributing benefits.

“States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” said Labor Secretary Hilda Solis.

Biden will hold additional meetings in the coming weeks with cabinet officials to monitor efforts to cut waste.

Meanwhile, House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calf.) released a new report this morning showing that new regulations put in place by the administration will cost businesses up to $380 billion over the next decade.

The report details how federal regulatory agencies have increased payrolls by 13% during President Obama’s time in office, and shows that the number of full-time regulatory employees is expected to grow to over 290,000 by next year.

Issa, who has been pressuring the White House to roll back rules since he took over as head of his committee back in January, said the new regulations would stifle economic growth.

“The businesses owners and workers who bear the brunt of these regulations are not Fortune 500 executives, they are main street business owners and workers from around the country,” he said. “These firms, their families, suppliers, customers and employees all bear the cost of these new and proposed regulations.”

Though Issa applauded Obama’s decision earlier this month to ask the EPA to scrap a key air quality rule, he urged the president to go further.

“Thus far, the rhetoric we have seen from the Obama Administration on the issue of regulatory reform has not been matched in deed.”

Administration Officials Tout New Report On Status Of Medicare

The Democrats’ sweeping healthcare reform law will extend the life of the Medicare hospital insurance fund by 12 years, according to a new government report on the status of Medicare and Social Security.

According to U.S. Treasury Secretary Tim Geithner, the nation’s Medicare trust fund should stay solvent until 2029. In addition, the healthcare overhaul, passed earlier this year, improves the long-term outlook for the Social Security trust fund, which analysts previously warned will be depleted by 2037. In 2010, Social Security expenditures will exceed receipts for the first time in more than 25 years.

While the short-term prognosis for the two big entitlements is slightly troublesome, Geithner said the Medicare figures are encouraging.

“These are very, very substantial improvements,” he said during a briefing on Thursday.

U.S. Health and Human Services Secretary Kathleen Sebelius added that the “outlook for Medicare has improved greatly,” as a result of the new healthcare law.

Sebelius, however, said that Congress must work on finding a permanent solution to the way in which physicians that accept Medicare are reimbursed by the federal government. Congress recently extended the “doc-fix” as it is known, but officials from the Centers for Medicare and Medicaid Services (CMS) have concluded that continued temporary fixes will in the long run negate some of the savings produced by the Affordable Care Act.

Sebelius And Insurance Industry Head Clash Over Health Care Reform

By Chingyu Wang-Talk Radio News Service

Health and Human Services Secretary Kathleen Sebelius and America's Health Insurance Plans (AHIP) CEO Karen Ignagni offered back to back remarks Wednesday that highlighted the vast differences between how the Obama administration and the insurance industry are viewing the current attempt to reform the U.S. health care system.

Sebelius, who appeared at AHIP's annual conference, suggested that funds used by AHIP for attack ads could be better spent on lowering coverage costs.

"I am hopeful that you can take the assets that you have and the influence ... and use it to start calling for comprehensive reform to pass," said Sebelius. "Instead of spending energy attacking the parts of the proposal that you don't like, come to the table."

Ignagni held a press conference immediately after and took the opportunity to raise concerns that AHIP continues to have with the legislation proposed by Democrats.

"We are committed to bringing everyone into the [health care] system," said Ignagni. "The problem that we have with the current legislation is that we are very concerned that it will make health care more expensive, not more affordable."

Added the CEO, "We have offered very specific proposals [to ensure affordability,]" said Ignagni. "We believe that the legislation needs to be fixed in that area; that it still can be fixed."

Sebelius argued that attacking the Democrat's proposal is a "short-term strategy."

"You can continue the opposition to reform and if you do, and reform fails, I can give you a pretty good prediction of what happens next," Sebelius said. "By next March, premiums will take even a bigger bite out of American's wages, your market will shrink even further [and] more Americans will lose their employer-sponsored insurance."

HHS Giving Non-Profits $10 Million To Help Curb Obesity And Tobacco Use

By Chingyu Wang
Talk Radio News Service

On Friday, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius outlined details of a $10 million grant for non-profit organizations to prevent and control obesity and tobacco use.

In a conference call with reporters, Sebelius presented data showing that in 2007 and 2008, two-thirds of Americans ages 20-74 were either overweight or obese, and that smoking and second-hand smoke remain the number one causes of preventable death in the U.S.

"More than eight million Americans suffer from smoking-related chronic illnesses," Sebelius added.

Sebelius said the Recovery Act funded the Prevention and Wellness Initiative to the tune of $650 million one year ago, adding that HHS has currently developed a new initiative -- Community Putting Prevention to Work -- which focuses on reducing chronic decease and promoting wellness.

The new grant comes on the heels of the launch of First Lady Michelle Obama's 'Let's Move' campaign, aimed at preventing childhood obesity.

Sebelius Touts $911 Billion For HHS In 2011 Budget

By Monique Cala - University of New Mexico/Talk Radio News Service

U.S. Department for Health and Human Services (HHS) Secretary Kathleen Sebelius announced Monday that President Barack Obama's proposed 2011 budget includes $911 billion for HHS.

“Whether fighting a pandemic, protecting food safety, or transforming the health care system with electronic medical records, the investments we’ve made have been guided by some of the finest scientific and medical experts in the world,” said Sebelius.

HHS has announced further investment in ‘next generation health care technologies,’ which includes a move to electronic health records by hospitals and doctors to help reduce medical errors, coordinate care and cut costs.

“What we have today is a sick care system, where we wait until something goes wrong to intervene,” said Sebelius.

According to the Secretary, HHS will work on prevention tactics by tackling obesity, which costs the U.S. health care system $150 billion a year, as well as fraud prevention with projected savings of $9.9 billion over ten years.

For more details on HHS's FY2011 budget visit FY2011 Budget.