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.”

Insurance Providers May Soon Have To Reveal Rationale Behind Premium Increases

By Laurel Brishel Prichard-University of New Mexico/ Talk Radio News Service

Health and Human Secretary Kathleen Sebelius told reporters Thursday that through the administration's health care reform effort, health insurance providers could soon be required to publish the rationale behind premium increases on American's policies.

“Right now we have a situation where the top 5 companies filed earning reports of $12.7 billion for 2009 in terms of profit statements and yet pivot around with double digit rate increase," Sebelius said during a conference call with reporters. “People have no bargaining power, they have no leverage and often are desperate in terms of what in the world they are going to do."

According to the secretary, posting the reasons behind raised premiums online will provide additional transparency.

Sebelius's remarks came shortly after a meeting with a variety of the heavy hitting insurance company CEO's and commissioners, including those from UnitedHealth Group, Aetna and WellPoint.

President Barack Obama stopped in during the meeting, according to Sebelius, to share a letter that he received from a cancer survivor in Ohio. Her rates were increased 25 percent last year, which put her insurance premiums at $7,000, with $4,000 in out of pocket costs, and has been informed that her rates will go up another 40 percent this year.

Sebelius quoted Obama saying “that kind of rate increase is just unacceptable and unsustainable.”

Sebelius Blasts Hike In Health Care Premiums

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

Secretary of Health and Human Services Kathleen Sebelius had harsh words regarding the ‘extreme’ premium increases insurance companies have requested this year.

“We are seeing this at a same time where not only is there an economic down turn around the country, but we know that insurance companies are not suffering that same kind of downturn,” said Sebelius during a conference call with reporters Thursday. “The five largest insurers in America have declared more than $12 billion worth of profits in 2009.”

The Secretary's comments came shortly after Health and Human Services released a report entitled "Insurance Companies Prosper, Families Suffer: Our Broken Health Insurance System," which detailed hikes in premiums, such as Anthem Blue Cross of California, which seeks to raise premiums by up to 39 percent.

Sebelius said she had contacted Blue Cross to ask for an explanation for the hike. In response, the company said they would delay the increase for two months.

According to the report, a recent study found that almost 75 percent of individuals looking for coverage on the individual market never bought a plan, with 61 percent of those who did not purchase insurance citing premium costs as the primary reason.

"The president said we won't fix the economy without fixing our healthcare system,” added Sebelius. “Thats why he invited leadership from the Democrats and Republicans, from the House and Senate, to sit down, roll up their sleeves and talk about a comprehensive health reform plan.”

Nearly $1 Billion In Stimulus Funds Set Aside For Health Care I.T.

$750 million in Recovery Act funds will be allocated toward improving information technology in the health care sector, Health and Human Services Secretary Kathleen Sebelius announced Friday.

“The awards we are talking about today ... help to unleash the power of health I.T. to cut costs, eliminate paper work and most of all help doctors deliver high-powered coordinated health care,” Sebelius said during a conference call with reporters.

According to a statement released by HHS, more than 100,000 medical centers and individual providers will have access to the technologies within the next four years.

The funds are coupled with an additional $225 million from the Recovery Act to train workers in careers based around the soon-to-be-implemented technologies.

Jared Bernstein, the Chief Economist for the office of the Vice President, praised the training programs as a wise investment.

“In every month of this recession, including those at the beginning... the health care sector was adding jobs,” Bernstein explained.

The program, which will be spearheaded by the Department of Labor, is set to provide training for 15,000 workers.

New Health And Human Services Report Claims Health Care Reform Will Create Jobs, Boost Income

By Laura Smith - University of New Mexico/Talk Radio News Service

Health and Human Services Secretary Kathleen Sebelius Friday lauded a new report compiled by HHS that claims health care reform will boost employment and raise individual families' incomes.

“Lots of families are looking into the future and asking what is it that happens to them when Congress passes health reform. The biggest change is that under reform families will have a lot more security and stability in the health insurance system than they have today,” Sebelius said.

The new report, entitled “Protecting Families and Putting More Money in Your Pocket: How Health Insurance Reform Will Lower Costs and Increase Choices,” states that "lowering health care costs by one percent will create 320,000 jobs nationwide and raise median family income by $6,800 by 2030."

The secretary also outlined the benefits the Senate's pending health care reform bill will bring to American families.

“If you lose your health insurance, it’s a lot easier to find a new policy. You don’t have to make 25 different phone calls to find coverage. It will be a new market place, called an exchange, where you can compare plans and rates and make some choices,” Sebelius stated.

She added, “there are basic rules that will apply to companies offering plans in the exchange. They can’t deny coverage because of pre-existing conditions, they can’t deny coverage once you have it, you can’t put a cap on benefits. That’s a huge change for American families, even those who have insurance today.”