Will health savings go to reduce deficit rather than expand coverage? | McClatchy

Will health savings go to reduce deficit rather than expand coverage? | McClatchy: "WASHINGTON — In their effort to overhaul the health care system, President Barack Obama and congressional Democrats pressed hospitals, drug makers and other providers to accept billions of dollars in government payment cuts and new fees to help finance the legislation.

The groups made the financial concessions because the measure promised a rich payoff: millions of newly insured customers. If the legislation fails, however, those savings, primarily cutbacks in Medicare and Medicaid, might end up being used for something far different: reducing the federal budget deficit.

The result would be lost revenue for influential industry players, and a setback for AARP. The seniors' group went along with the proposed Medicare cuts, even in the face of criticism from members, in part because other provisions would provide new help in paying for prescription drugs and long-term care.

'They'll be eating spinach and no cake,' said Paul Heldman, a senior health-policy analyst at Potomac Research Group, a Washington research firm."