US Medicare: Clinton's Cuts Plan "Is Too Much"

US Health and Human Services Secretary Donna Shalala has told theAmerican Hospital Association that the 1998 budget will not seek a freeze on the Medicare payment rate to hospitals. The Prospective Payment Assessment Commission, which reviews Medicare payments for Congress, had suggested that the rate could be frozen.

A White House official said Sec Shalala did not rule out a freeze, but the initial plan indicated that a freeze is not needed. She also released data showing US health spending rose 5.5% in 1995 to almost $1 trillion; public-sector spending grew 8.7% while private health spending rose 2.9%.

The Clinton Medicare plan relies too heavily on cuts to providers to lower costs, Senate Majority Leader Trent Lott told the AHA. The Republicans will not make the first move to raise premiums for beneficiaries; the final plan must have restraints on both providers and beneficiaries.