On Monday the President released his $3.73 trillion Fiscal Year 2012 budget offering more than $1 trillion in deficit reductions over a 10-year period.  Three-quarters of the reductions come from proposed spending cuts while the balance comes from tax increases or the elimination of existing tax breaks. The cuts come from a 12% portion of total national spending made up of non-security discretionary allocations.

Approximately $62 billion in health savings has been created within the budget to offset the cost of a 24-month sustainable growth rate formula extension.  The health savings offset is derived from a list of changes to discretionary items including some key areas on the oncology space:

-   Changes beginning in 2015 to the threshold for Medicaid eligibility
-   Track and trace of high prescribers of prescription drugs in Medicaid
-   Recovery of erroneous payments made under Medicare Advantage plans
-   Dedication of electronic health record penalties to improve Medicare program financing
-   Modification of the length of biologic drug exclusivity from 12 years to 7 years to facilitate faster
    development of generic biologics
-   Prohibition of brand and generic drug companies from entering into agreements to delay the availability of
    generic drug

The budget touches on key health care provisions, including:

Building on Health Information Technology (HIT)  

The Budget includes $110 million for continuing efforts to strengthen HIT policy, coordination, and research activities. Combined with the ARRA Federal grant and incentives programs designed to assist providers with adoption and meaningful use of electronic health records, these efforts will positively affect and improve the quality of health care while protecting privacy and security of personal health information.  

Increased Investment in Comparative Effectiveness Research  

The Budget includes $286 million in the Agency for Healthcare Research and Quality for research that compares the effectiveness of different medical options. The dissemination of this research is expected to lead to higher quality, evidence-based medicine, arming patients and physicians with the best available information to allow them to choose the medical option that will work the best for them.  

Support for Biomedical Research at the National Institutes of Health (NIH)  

To accelerate progress in biomedical research, NIH investments will focus on priority areas including genomics, translational research, science to support health care reform, global health, and reinvigorating the biomedical research community.   The Budget includes $6,036 million to support a range of bold and innovative cancer efforts, including the initiation of 30 new drug trials in 2011, and a doubling of the number of novel compounds in Phase 1–3 clinical trials by 2016. In addition, the Budget will support the completion of a comprehensive catalog of cancer mutations for the 20 most common malignancies, setting the stage for complete genomic characterization of every cancer as part of medical care within 10 years.  

Fighting Waste and Abuse in Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP)

In November 2009, the President signed an Executive Order to reduce improper payments by boosting transparency, holding agencies accountable, and creating incentives for compliance. This Budget puts forward an addition $250 million to implement a robust set of proposals to strengthen Medicare, Medicaid and CHIP program integrity actions, including proposals aimed at preventing fraud and abuse before they occur, detecting it as early as possible when it does occur, and vigorously enforcing all penalties and recourses available when fraud is identified.  

While this budget request offers a look into the President’s priorities following a shift in House control, it remains to be seen how influential this plan will be within the context of the overall budget debate. Republicans plan to offer their own spending proposal and will attempt to push through steep cuts to spending in the next week as they introduce the continuing resolution needed to fund the federal government through 2011.

To review the President's 2012 budget plan click here

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Health Policy Report - September 23, 2015
  • • Site-Neutral Payment Reforms Cited as Possible Sequester Offset Solution
  • • New Report Finds 340B Growth Larger than Previously Understood
  • • Congressional Hearing Examines Healthcare Consolidations
  • • New CMS Equity Plan Seeks to Reduce Health Disparities in Medicare

      Health Policy Report - September 10, 2015
      • • TAKE ACTION! Ask Congress to Help Stop Proposed Medicare Cuts to Cancer Care
      • • NHRSA Releases 340B Discount Drug Program Guidance
      • • New CBO Projections Predict Lower Long-Term Medicare Spending
      • • CMS Studies Shift Toward Hospital-Based Physician Practices

          Health Policy Report - August 13, 2015
          • • Dr. Barry Brooks: Equalize Payment Across Site of Service
          • • New Report Shows States Falling Behind in Efforts to Prevent Cancer
          • • Senate Finance Committee Posts 530 Submissions to Chronic Conditions Work Group
          • • Bipartisan Think Tank Recommends Near-Term Improvements to ACO Model

              Health Policy Report - July 29, 2015
              • • Ways & Means Committee Examines Hospital Site Neutral Payment Reforms
              • • More than 100 Oncologists Call for Lower Drug Prices in Letter to Policymakers
              • • Senator Grassley Calls for 340B Hearings for Unintended Consequences
              • • Medicare Depletion Date Expected at 2030

                  Health Policy Report - July 15, 2015
                  • • CMS Releases Proposed Rule for 2016 Medicare Physician Fee Schedule
                  • • U.S. House Passes 21st Century Cures Legislation
                  • • GAO Study: Eliminate Incentives for Expensive Drugs at 340B Hospitals
                  • • CMS Helps Physicians Transition to ICD-10 with 12-Month Safe Harbor Period, Ombudsman, and Training

                      Health Policy Report - June 30, 2015
                      • • Bipartisan Bill to Equalize Medicare Payments for Cancer Care Introduced in the House
                      • • GOP Doctors Caucus Seeks to Preserve Medicare Self-Referral Exception
                      • • U.S. Supreme Court Upholds Insurance Subsidies in King v. Burwell

                          Health Policy Report - June 3, 2015
                          • • Federal Government Releases 2013 Medicare Billing Data
                          • • Senate Finance Leaders to Explore Improved Delivery of Chronic Care
                          • •NIH Announces Nationwide Precision Medicine Trial for Cancer Patients
                          • • Senate Finance Committee Examples Medicare Audit and Appeals Reforms

                              Health Policy Report - May 21, 2015
                              • • Energy & Commerce Committee Releases Updated 21st Century Cures Legislation; 340B Reform Measure Not Included
                              • • Connecticut Senate Bill Proposes Site-Neutral Payment Reforms
                              • • Petition Calls for Expanded Copay Assistance Programs, Patient Access to Cancer Care
                              • • IMS Institute Unveils Global Oncology Trend Report
                              • • CDC Report: Cancer Screening Rates on Decline

                                  Health Policy Report - May 6, 2015
                                  • • TAKE ACTION: Ask Lawmakers to Oppose Proposal to Extend Sequestration Cuts
                                  • • President Obama Signs Historic SGR Reform Legislation
                                  • • CMS: Small Volume of Medicare Claims will be Impacted by SGR, Processed at Reduced Rate
                                  • • MedPAC Analyzes Bundling Oncology Services
                                  • • CMS Proposes Changes to EHR Incentive Program
                                  • • April Health Affairs Focuses on Cancer Care
                                  • • USPSTF Issues New Draft Recommendations on Breast Cancer Screening

                                      Health Policy Report - April 23, 2015
                                      • • TAKE ACTION: Ask Lawmakers to Oppose Proposal to Extend Sequestration Cuts
                                      • • President Obama Signs Historic SGR Reform Legislation
                                      • • CMS: Small Volume of Medicare Claims will be Impacted by SGR, Processed at Reduced Rate
                                      • • MedPAC Analyzes Bundling Oncology Services
                                      • • CMS Proposes Changes to EHR Incentive Program
                                      • • April Health Affairs Focuses on Cancer Care
                                      • • USPSTF Issues New Draft Recommendations on Breast Cancer Screening

                                          Health Policy Report - April 1, 2015
                                          • • US House Passes Bipartisan Bill to Repeal SGR
                                          • • Senate, House Pass Budget Resolutions
                                          • • House Energy and Commerce Committee Examines 340B Program
                                          • • New Study Refutes Claims that Self-Referral Encourages Inappropriate Utilization or Increased Medicare Spending
                                          • • GAO Analyzes Medicare Payments to Certain Cancer Hospitals

                                              Health Policy Report - March 20, 2015
                                              • • Congress Introduces Bipartisan Bill to Repeal SGR
                                              • • MedPAC Once Again Recommends Site-Neutral Payment Reform
                                              • • Medicare to Publish Physician-Payment Data Next Month
                                              • • U.S. Supreme Court Examines Health Insurance Subsidies in King v. Burwell
                                              • • HHS Unveils Next Generation Accountable Care Organization Model
                                              • • CDC Unveils Report on Invasive Cancer Incidence and Survival
                                              • • Maryland Legislature Considers Law Allowing Integrated Cancer Care
                                              • • CMS Considers Expansion of Coverage for PET Cancer Scans

                                                  Health Policy Report - February 26, 2015
                                                  • • The US Oncology Network’s Dr. Barry Brooks Pens Op-Ed Highlighting Need for Site-Neutral Medicare Payment Reform
                                                  • • HHS Unveils New Payment Model for Cancer Care
                                                  • • Prompt Pay Discount Legislation Introduced in U.S. House
                                                  • • CMS Approves Medicare Coverage for Lung Cancer Screening
                                                  • • CBO Releases Higher SGR Replacement Cost Estimate
                                                  • • Lawmakers Debate Preparedness for ICD-10 Transition

                                                      Health Policy Report - February 5, 2015
                                                      • • President Obama Endorses Site-Neutral Payment Policies in FY2016 Budget Proposal
                                                      • • Obama Administration Releases Details of Precision Medicine Initiative
                                                      • • 21st Century Cures Initiative Enters Legislative Phase
                                                      • • HHS Unveils Plan to Revamp Medicare Payments
                                                      • • HHS Asks DC Court To Drop 340B Orphan Drug Lawsuit

                                                          Health Policy Report - January 23, 2015
                                                          • • The US Oncology Network Joins New Alliance for Site-Neutral Payment Reform
                                                          • • Energy and Commerce Committee Hearing Focuses on Future of SGR
                                                          • • Obama Sets an Ambitious Agenda In State of the Union, Healthcare Not A Focus
                                                          • • MedPAC Discusses Site-Neutral Payments, Hospital Reimbursement, and Physician Payment Rates

                                                              Health Policy Report - January 7, 2015
                                                              • • 114th Congress Convenes, Republicans Control Both Chambers of Congress
                                                              • • 2014 Healthcare Policy Milestones & Trends
                                                              • • Congress Raises Concerns about 340B
                                                              • • MedPAC Shows Continued Support for Payment Parity
                                                              • • Cancer Death Rates in U.S. Continue to Decline

                                                                  Health Policy Report - December 10, 2014
                                                                  • • Report: 340B Sales to Rise
                                                                  • • National Media Outlets Examine Impact of Higher Hospital Costs on Cancer Care
                                                                  • • Healthcare Spending Growth Slowed in 2013
                                                                  • •U.S. House of Representatives Passes ABLE Act
                                                                  • • CMS Proposes New ACO Regulation

                                                                      Health Policy Report - November 20, 2014
                                                                      • • MedPAC Examines Part B Drug Payment Policy
                                                                      • • HRSA Pulls Back 340B 'Mega Rule’
                                                                      • • Supreme Court to Hear Affordable Care Act Subsidies Case
                                                                      • • Lawmakers, Physician Groups Seek SGR Reform in Lame Duck Session
                                                                      • • CMS Proposed Lung Cancer Screening Coverage for High-Risk Beneficiaries
                                                                      • • VA Reimbursement Rule Has Providers Fearing Slow Payment

                                                                          Health Policy Report - November 4, 2014
                                                                          • • CMS Releases Final Rule for 2015 Medicare Physician Fee Schedule
                                                                          • • HRSA Asks Drug Manufacturers to Refund 340B Overcharges
                                                                          • • Medical Costs Up to 20% Higher at Hospital-Owned Physician Groups, Study Finds
                                                                          • • Supreme Court Not Taking Up Insurance Subsidies Lawsuit Yet
                                                                          • • Simpler Home Test for Colon Cancer Offered

                                                                              Health Policy Report - October 22, 2014
                                                                              • • New COA Report Finds 82% Increase in Cancer Clinic Closings Since 2010
                                                                              • • PhRMA Files Suit Challenging HHS Orphan Drug Regulation
                                                                              • • Aunt Minnie Op-Ed: Payment parity in radiation therapy best serves cancer patients
                                                                              • • JAMA Articles Illustrate Division Over Lung Cancer Screening
                                                                              • • AMA Sends Blueprint to Strengthen the Meaningful Use Program to CMS

                                                                                  Health Policy Report - October 8, 2014
                                                                                  • • More than 160 Members of Congress Weigh in with CMS on Radiation Oncology Cuts
                                                                                  • • Congress Breaks for Mid-Term Election Campaigning; Lame-Duck Session Approaching
                                                                                  • • Health Affairs Report Findings Reinforce 340B Program Abuse Concerns
                                                                                  • • Physician Groups Warn New Open Payments Site Contains Errors, Lack Accuracy
                                                                                  • • Role of RUC in Assigning Medicare Payments Called into Question

                                                                                      Health Policy Report - September 26, 2014
                                                                                      • • Republican Lawmakers Call for Increased Transparency in Rule Making Process
                                                                                      • • MedPAC Weighs Least-Costly Alternative Approaches To Control Part B Drug Prices
                                                                                      • • CMS Releases Medicare ACO and Shared Savings Program Results
                                                                                      • • Stakeholders Concerned Sunshine Act Data Release Lacks Needed Context and Background Information
                                                                                      • • Bipartisan Bill Introduced in House to Extend Deadline to Show Meaningful Use of Electronic Health Records

                                                                                          Health Policy Report - September 10, 2014
                                                                                          • • Take Action Today! Encourage Congress to Stand Up Against Proposed Radiation Oncology Cuts
                                                                                          • • The US Oncology Network Submits Formal Comments to CMS on Proposed Payment Policy Revisions
                                                                                          • • Bipartisan House Energy & Commerce Health Subcommittee Leaders Ask CMS to Maintain Status Quo on Radiation Therapy Payments
                                                                                          • • Open Payments Site Experiences Delays; Physicians Concerned
                                                                                          • • District Court Upholds New Interpretive HRSA Rule on 340B Orphan Drug Exclusions
                                                                                          • • New CMS Report Predicts Positive Trends in Healthcare Spending

                                                                                              Health Policy Report - August 19, 2014
                                                                                              • • CMS Releases Potential Innovative Oncology Payment Model
                                                                                              • • New Veteran Affairs Bill Expands Private Practice Services to Veterans
                                                                                              • • Physician Groups Concerned Open Payments Dispute Process Flawed
                                                                                              • • RAND Analysis Recommends Review of 340B Program Processes
                                                                                              • • 310,000 Enrollees To Lose Healthcare Coverage If Citizenship Not Verified

                                                                                                  Health Policy Report - August 5, 2014
                                                                                                  • • New Medicare Report: Improved Financial Outlook for Medicare Trust Fund
                                                                                                  • • Bipartisan Lawmakers Express Support For 340B Program
                                                                                                  • • The US Oncology Network Joins Cancer Care Advocates in Submitting USP Chapter <800> Comments
                                                                                                  • • E&C Health Subcommittee Convenes Markup on Important Healthcare Legislation

                                                                                                      Health Policy Report - July 23, 2014
                                                                                                      • • Two U.S. Appeals Courts Issue Contradictory ACA Subsidies Rulings
                                                                                                      • • HRSA Issues Interpretive Rule Maintaining 340B Orphan Drug Exclusion
                                                                                                      • • CMS Proposes Eliminating CME Exclusion from Open Payments Program
                                                                                                      • • Colon Cancer Care Advocates Urge Congress to Eliminate Colonoscopy Copay
                                                                                                      • • Health Affairs Examines Future of “Big Data” in US Healthcare System

                                                                                                          Health Policy Report - July 9, 2014
                                                                                                          • • CMS Releases Proposed Rule Setting 2015 Medicare Physician Fee Schedule Payment Rates
                                                                                                          • • HRSA Releases 340B Auditing Process Changes
                                                                                                          • • Study Finds Cost of Care for Common Patient Services Doubles in HOPD
                                                                                                          • • Open Payments System Registration for Physicians Begins Mid-Month

                                                                                                              Health Policy Report - June 18, 2014
                                                                                                              • • New Study Finds Shift To Hospital Setting Drives Up Cancer Costs
                                                                                                              • • Alliance for Integrity and Reform of 340B Hosts National Leadership Summit to Discuss 340B Reforms
                                                                                                              • • MedPAC Expands Support of Site Neutral Payments
                                                                                                              • • Large Bipartisan Group of Lawmakers Urge Medicare Decision on Low-Dose CT Scans For Lung Cancer Screening

                                                                                                                  Health Policy Report - June 4, 2014
                                                                                                                  • • The US Oncology Network’s Barry Brooks Testifies Before House Energy & Commerce Health Subcommittee on Site-Neutral Medicare Payment Reform
                                                                                                                  • • Court Decision Calls HRSA 340B Rule-Making Authority Into Question
                                                                                                                  • • New Study Examines 340B Hospital Acquisitions of Physician-Based Oncology Practices
                                                                                                                  • • CMS Issues Proposed Rule on “Meaningful Use” Requirements
                                                                                                                  • • Senators Urge Medicare to Cover Lung Cancer Test
                                                                                                                  • • Burwell Vote Likely this Week

                                                                                                                      Health Policy Report - May 14, 2014
                                                                                                                      • • IMS Institute: Higher Cancer Costs Due to Shift To Hospital Outpatient Facilities
                                                                                                                      • • Stanford University Study Finds Hospital Ownership of Physician Practices Leads to Higher Prices
                                                                                                                      • • CMS Confirms One-Year Delay of ICD-10 Code Transition
                                                                                                                      • • Senate Holds Confirmation Hearings for HHS Secretary Nominee Burwell
                                                                                                                      • • HHS: Health Insurance Marketplace Enrollment Exceeds 8 Million Americans

                                                                                                                          Health Policy Report - April 30, 2014
                                                                                                                          • • MARK YOUR CALENDAR! Virtual Hill Days May 7 & 8
                                                                                                                          • • Jonathan Blum Announces CMS Departure
                                                                                                                          • • Burwell Hearing Set
                                                                                                                          • • Healthcare Coalition Urges CMS to Set Date for Implementation of ICD-10 Codes
                                                                                                                          • • New Online Tool Available to Search Physician Payment Data

                                                                                                                              Health Policy Report - April 16, 2014
                                                                                                                              • • CMS Announces Release of Physician Payment Information
                                                                                                                              • • Narrow Insurance Networks Could Threaten Patient Access to Specialized Cancer Care Centers
                                                                                                                              • • HHS Secretary Kathleen Sebelius Steps Down
                                                                                                                              • • House Passes Ryan Budget Resolution; Action Not Likely in Senate
                                                                                                                              • • CBO Releases Updated Budget Projections for SGR Patch

                                                                                                                                  Health Policy Report - April 1, 2014
                                                                                                                                  • • The US Oncology Network Joins Community Oncology Alliance in Urging Congressional Leaders to Address Cancer Care Crisis
                                                                                                                                  • • Congress Moves to Avert Medicare Physician Payment Cuts
                                                                                                                                  • • New Analysis Shows Many 340B Hospitals Provide Minimal Charity Care
                                                                                                                                  • • Obamacare Open Enrollment Period Closes

                                                                                                                                      Health Policy Report - March 20, 2014
                                                                                                                                      • • House Passes SGR Repeal with Delay of ACA Individual Mandate
                                                                                                                                      • • Coalition for Patient Centered Imaging Urges Congress to Preserve Patient Access to Integrated Care
                                                                                                                                      • • New Report Finds Overall Cancer Cases on the Rise
                                                                                                                                      • • HHS Updates HIPAA Regulations
                                                                                                                                      • • Colon Cancer Rates Drop by 30 Percent

                                                                                                                                          Health Policy Report - March 6, 2014
                                                                                                                                          • • Virginia Cancer Specialists Featured in Fox New Special Report
                                                                                                                                          • • Op-Ed Highlights Importance of Rational Payments for Cancer Care
                                                                                                                                          • • President Obama Releases 2015 Budget Proposal
                                                                                                                                          • • CBO Releases Score for SGR Bill
                                                                                                                                          • • Quality Data Added to CMS’ Physician Compare Website
                                                                                                                                          • • World Health Organization: Cancer Cases on the Rise

                                                                                                                                              Health Policy Report - February 20, 2014
                                                                                                                                              • • The US Oncology Network’s Dr. Barry Brooks Calls for Equalization of Medicare Payments in The Hill
                                                                                                                                              • • OIG Releases Report on 340B Drug Discount Program
                                                                                                                                              • • Congress Votes to Extend Sequestration
                                                                                                                                              • • Lancet Oncology Paper Calls on Oncology Community to Recognize Costs, Limitations of Cancer Treatments
                                                                                                                                              • • Insurance Exchange Enrollment Climbs to 3.3 Million
                                                                                                                                              • • CBO Report Finds Slower Medicare Spending Growth

                                                                                                                                                  Health Policy Report - February 6, 2014
                                                                                                                                                  • • Lawmakers Reach SGR Deal with Five Years of 0.5 Percent Payment Hikes
                                                                                                                                                  • • President Obama Delivers State of the Union Address
                                                                                                                                                  • • Congressman Henry Waxman Announces Retirement
                                                                                                                                                  • • CMS Report Finds ACOs Are Lowering Spending Growth
                                                                                                                                                  • • CMMI Technical Expert Panel for Oncology Examines Alternative Payment Models
                                                                                                                                                  • • COA and ASCO Release Principles for Payment System Reform

                                                                                                                                                      Health Policy Report - January 23, 2014
                                                                                                                                                      • • MedPAC Recommends Aligning Payments Across Care Settings
                                                                                                                                                      • • CMS Announces Release of Physician Payment Data
                                                                                                                                                      • • Congress Approves $1.1 Trillion Spending Bill
                                                                                                                                                      • • New Study: IMRT Improved Survival Rates in Head and Neck Cancer Patients

                                                                                                                                                          Health Policy Report - January 7, 2014
                                                                                                                                                          • • Congress Returns to Washington; Budget Deal Needed Before January 16 Deadline
                                                                                                                                                          • • Senate Finance and Ways and Means Committees Mark Up Permanent SGR Replacement Bill
                                                                                                                                                          • • Obamacare Enrollment Swells in December
                                                                                                                                                          • • New Obama Administration Report Claims Slow Healthcare Spending Growth
                                                                                                                                                          • • Final USPSTF Screening Recommendations for Lung Cancer Released

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