As we know from last Friday, the government passed a budget to keep itself operational until Thursday. Considering what the Republicans and Paul Ryan have put up as the alternative budget to Obama’s we can sort of expect that perhaps the final budget will be in between the two. Unfortunately, it just increases the uncertainty of healthcare’s future in the US. To summarize, if Ryan has his way, Obama’s health reform would be effectively repealed. Ryan’s budget also makes large cuts to Medicare and Medicaid spending. It seems to have dawned on people that perhaps we don’t have the money to spend on everybody to get health care coverage and services.
This unfortunately spreads deep into the health sector. On insurance side, companies like UnitedHealth Group and Humana have a large number of Medicare enrollees through part D. On hospital and physician side, Medicare is a large part of their reimbursement and on pharma/med device, Medicare and Medicaid enrollees also make up a significant share of the revenue.
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