Medicare cuts called for in US President's budget priorities

Although the focus of US President George W Bush's budget proposals was on national security, Medicare was an area where savings are being sought. The US budget would hold overall discretionary spending below the rate of inflation in 2007, and the requests for a 6.9% hike in defence spending and 3.3% in homeland security, would require a reduction of around 0.5% in other areas.

Specifically, the budget calls for cuts of $65.0 billion in Medicare, the program for seniors, and other domestic entitlement projects over the next five years. The largest part of the reduction would come from slowing the growth of Medicare to save $36.0 billion over the next five years, a move seen as controversial in an election year.