Fiscal Year 2010 Budget in Brief
Centers for Medicare & Medicaid Services
(dollars in millions)
| 2008 | 2009 | 2010 | 2010 |
Current Law: | ||||
Medicare /1 | 390,742 | 430,762 | 446,560 | +15,798 |
Medicaid /2 | 201,426 | 262,389 | 289,764 | +27,375 |
CHIP /3 | 6,900 | 8,566 | 10,095 | +1,529 |
State Grants and Demonstrations | 427 | 897 | 796 | -101 |
Recovery Act Provisions (non-add) | -- | 35,932 | 42,670 | -- |
Total Net Outlays, Current Law | 599,495 | 702,614 | 747,215 | +44,601 |
| ||||
Baseline Adjustment to Physician Payments | -- | -- | 11,713 | +11,713 |
Administrative Adjustment for Physician Administered Drugs (non-add) /4 | -- | -- | 2,030 | -- |
Total Net Outlays, Current Policy | 599,495 | 702,614 | 758,928 | +56,314 |
| ||||
Medicaid and CHIP | -- | -- | -1 | +1 |
State Grants and Demonstrations | -- | -- | 20 | +20 |
Total, Proposed Law | -- | -- | 19 | +19 |
Total Net Outlays, Proposed Law /5 | 599,495 | 702,614 | 758,947 | +56,333 |
| ||||
Medicare (non-add) | -- | -- | -520 | -520 |
Medicaid (non-add) | -- | -- | -1,450 | -1,450 |
/1 Current law Medicare outlays net of offsetting receipts.
/2 Net outlays net of Qualified Individuals.
/3 Includes the Child Enrollment Contingency Fund.
/4 Preliminary estimate assumed within baseline adjustment to physician payments.
/5 Total net proposed law outlays equal current law outlays plus the impact of proposed legislation and offsetting receipts.includes non-CMS administration.
The Centers for Medicare & Medicaid Services ensures effective, up-to-date health care coverage and promotes quality care for beneficiaries.
The FY 2010 Budget request for the Centers for Medicare & Medicaid Services (CMS) is $758.9 billion in mandatory and discretionary outlays, a net increase of $56.3 billion over the FY 2009 level. This request finances Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), program integrity efforts, and CMS operating costs.
CMS is the largest purchaser of health care in the United States, serving 98 million Medicare, Medicaid, and CHIP beneficiaries.
RECENT LEGISLATION
The recent reauthorization of CHIP fulfills the President’s commitment to expand CHIP coverage from 7.9 million in FY 2008 to over 12 million children in FY 2013. It expands CHIP and provides tools and incentives for States to strengthen and expand their CHIP programs.
The American Recovery and Reinvestment Act of 2009 protects health care coverage for millions of Americans during the recession by temporarily increasing Federal Medicaid funding to help States facing budget shortfalls to maintain their current programs.
The Recovery Act also includes $45 billion in funding to accelerate the adoption of electronic health records through incentives to Medicare and Medicaid providers starting in 2011.
HEALTH REFORM RESERVE FUND
The Budget includes Medicare and Medicaid savings totaling $2.0 billion in FY 2010 and $309.1 billion over ten years to finance a portion of the health reform reserve fund. These proposals are designed to align incentives toward quality, promote efficiency and accountability, and encourage shared responsibility. The proposals are described in the Medicare and Medicaid sections.
BUDGET REQUEST
The CMS request also includes funding for the following priorities:
- A $311 million discretionary investment to combat health care fraud and abuse.
- $75 million in new mandatory funds for State high risk pools.
- A new $30 million investment for an expanded Medicare and Medicaid research agenda that will lay the groundwork for long-term reform of the health care system.
- $347 million for survey and certification to establish more frequent health facility surveys to protect beneficiary health and safety.
- The establishment of two permanent user fees to finance survey and certification activities.