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February 2010 St@teside

Obama's Budget Request Includes Some Increases in Health Spending

President Obama’s proposed 2011 budget of $915.5 billion includes a modest 3.9 percent increase from 2010 for Health and Human Services (HHS) spending (at $81.3 billion).  While the 2010 budget proposed a 10-year, $634 billion reserve fund as a “down payment” on universal coverage, a similar fund is notably missing from this year’s proposal.  However, according to the Washington Post, administration sources have said that the federal budget assumes a bill will pass and that this would result in a deficit reduction of $150 billion over the next decade.

State officials have expressed concerned about what will come of the increased Federal Medical Assistance Percentage(FMAP) from the 2009 American Recovery and Reinvestment Act.  A proposed $25.5 billion to continue an increased Medicaid FMAP for six months (through June 2011) could mitigate some of their worries.  This amount is in addition to the $290 billion for state Medicaid programs.

Two areas that will continue to receive increased funding are health information technology ($110 million) and comparative effectiveness research of different medical options ($286 million).  The budget envisions an additional $2.5 billion for community health centers to provide affordable, high quality primary and preventive care to underserved populations, including the uninsured.  Refer to this fact sheetfrom the Obama administration for more information on the full HHS budget request.  Also, see this New York Timesinteractive chartto view spending by category, as well as spending changes from 2010.


Obama’s 2011 Budget Proposal:  How It’s Spent,” The New York Times, February 1, 2009.

Obama’s 2011 Budget Highlights,” CBS News, February 1, 2010.

President’s Budget 2011 - Department of Health and Human Services, Office of Management and Budget, Fact Sheet.  Accessed on February 23, 2010.

Obama 2011 Budget Request:  Department of Health and Human Services,” The Washington Post, February 1, 2010.