House and Senate Votes to Adopt FY2010 Budget

On April 29, 2009, both the House and Senate voted to adopt the $3.56 trillion fiscal year (FY) 2010 budget resolution. The resolution included $263 million for nursing workforce development programs and also reconciliation instructions which would allow Congress to move health care reform without encountering a potential Senate filibuster.  Although no Republicans voted for the Budget conference report in either chamber, the House voted 233-193 and the Senate 53-43 to adopt the FY10 budget.

Title VIII Health Professions
The American Nurses Association (ANA) strongly supported President Obama’s FY 2010 budget, which provides $1 billion for the Health Resources and Services Administration (HRSA) health care workforce development programs, and improves access to health care in underserved areas. The proposed budget also includes $263 million, an increase of $92 million, in Title VIII programs to address the growing nursing shortage. It provides $125 million, a 238 percent increase, to fund nurses serving in critical shortage facilities, supplies increased funds for scholarship and loan repayment awards, and adds an estimated 550 additional nurse faculty educators to ensure nursing schools have the capacity to educate and train the next generation of nurses.

Medicare and Medicaid
The FY 2010 budget also calls for $309 billion in cuts and savings over the next 10 years for Medicare and Medicaid programs.  However, programs to combat fraud, waste and abuse would get a $1.7 billion increase over the next five years.  "We estimate that for every dollar we spend to stop fraud in the system, we save $1.55," noted Secretary of Health and Human Services Kathleen Sebelius.
 
Medicare cuts would affect various providers and payment systems.  Medicare Advantage plans would be subject to competitive bidding, saving $177 billion.  Payments to home health agencies would be cut $34 billion.  Hospital quality incentive payments, bundling of post-acute care payments and penalties for readmissions are projected to save $36.5 billion.  The Medicaid savings would come from increases in prescription drug rebates, estimated to save $13.9 billion.

Rachel Conant and Eileen Shannon Carlson, RN, JD