Wednesday, June 10, 2009

Obama Administration Urges Statutory Pay-As-You-Go

This week the Obama administration outlined a plan to keep the federal government within its means which included a return to statutory pay-as-you-go requirements, often referred to as “paygo.” Paygo would include automatic cuts in mandatory programs as penalties for violations and means every dollar spent by Congress must have an offset. At a press conference yesterday, President Obama described it this way,” Congress can only spend a dollar if it saves a dollar elsewhere.” It’s not clear whether paygo rules would apply to the healthcare reform effort. But the growing concern among fiscally conservative Democrats and the GOP about federal spending underscores AAHomecare’s focus on HME reform legislation that is budget neutral.

The President’s plan included tasking the OMB with maintaining a Paygo ledger to record the average 10-year budgetary effects of all legislation enacted through 2013 affecting mandatory spending.

1 comment:

Jack Brodbeck said...

Wiping out the PWC business with one stroke of the pen. Clearly, the Congress and the Executive Branch will doom most small business DME with "Pay-as-you-go". Who will pick up the tab for a power chair? Imagine the condition of longer term rentals and the cost of upkeep. Pay-as-you-go sounds good - in the Beltway. It is "SLAY-as you-go" out in the field of homecare.