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FP Report -- June 1997


Proposed budget would slow Medicare spending

Early last month, President Bill Clinton and congressional leaders reached agreement on a plan to balance the federal budget by the year 2002. The proposed budget would slow Medicare spending by $125 billion over five years, although $10 billion of that amount would be used to expand coverage of preventive care, so the "net" cut is $115 billion compared with currently projected spending. The budget would also slow Medicaid spending by $24 billion over five years.




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