What it Means for Health Care Alliance for Health Reform September 12, 2011 Katherine Hayes The...
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![Page 1: What it Means for Health Care Alliance for Health Reform September 12, 2011 Katherine Hayes The George Washington University School of Public Health and.](https://reader036.fdocuments.in/reader036/viewer/2022082917/5514cdac55034640138b5ec4/html5/thumbnails/1.jpg)
What it Means for Health Care
Alliance for Health ReformSeptember 12, 2011
Katherine HayesThe George Washington University School of Public Health and Health ServicesDepartment of Health Policy
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Budget Control Act of 2011: OverviewDebt CeilingBalanced Budget Amendment VoteJoint Select Committee on Deficit ReductionEnforcement
Sequestration (of discretionary spending in a given FY)
Sequestration of up to $1.2 billion if no deficit reduction enacted and revision of discretionary spending caps
Education Provisions (not addressed today)
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Debt Ceiling Increase: Three-steps $2.1 (or up to $2.4 trillion)$400 billion – Presidential certification (August
2, 2011)$500 billion – 50 calendar days after initial
certification (September 21, 2011)$1.2 t0 $1.5 trillion
$1.2 billion – $0 to 1.2 billion in deficit reduction enacted
$1.2-1.5 billion – Actual deficit reduction amount enacted
$1.5 billion – Constitutional amendment on balanced budget passes
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Balanced Budget AmendmentCongress must vote on a balanced budget
amendment to the ConstitutionSeptember 30 – December 31, 2011If both Houses approve, debt ceiling can be
increased by $1.5 trillionExpedited procedures for 2nd chamber
consideration
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Limits on Discretionary Spending10 year “adjustable” statutory limits
(appropriations caps) for FY 2012-2021FY 2012 and FY 2013 - Equally split between
Security (DoD, DHS, DVA, NNSA, intelligence, international affairs)
Non-security (everything else)FY 2014-2021 – no split between security and
non-securityEnforcement
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Annual Enforcement of Discretionary Spending Caps15 days after end of a Congressional sessionIf appropriations within a category is exceed,
sequestration is triggered in “nonexempt” accounts.
President issues sequestration order within category breached (security v. non-security) in FY 2012-13
Congress can modify sequestration order (expedited procedure)
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Joint Select Committee on Deficit ReductionDeficit reduction target of at least $1.5
trillion FY2012-2021Expedited procedure for consideration of
legislation (if any) reported by Super Committee
If no deficit reduction legislation enacted by January 15, 2011, (minimum of $1.2 trillion) automatic spending reductions go into effect on January 2, 2013 (unless there is intervening legislation).
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Super Committee DeadlinesAugust 16, 2011 – Appointment of MembersSeptember 16, 2011 – Committee must begin meetingOctober 14, 2011 – House and Senate Committees
may make recommendationsNovember 23, 2011 – Committee must vote on
proposed deficit reduction legislation and report December 2, 2011 – If adopted, transmit to President,
VP and House and Senate leadersDecember 9, 2011 – Committees of jurisdiction reportDecember 23, 2011 – Final passage January 15, 2012 – Sequestration fallback if no law
enactedJanuary 31, 2012 – Committee dissolved
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Joint Select Committee on Deficit Reduction – House MembersHouse
Speaker Boehner (R-OH) Jeb Hensarling (R-TX) – Committee co-chair Dave Camp (R-MI) Fred Upton (R-MI)
Minority Leader Pelosi Chris Van Hollen (D-MD) Jim Clyburn (D-SC) Xavier Becerra (D-CA)
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Joint Select Committee on Deficit Reduction – Senate MembersSenate
Majority Leader Reid (D-NV) Patty Murray (D-WA) – Committee co-chair Max Baucus (D-MT) John Kerry (D-MA)
Minority Leader McConnell (R-KY) Pat Toomey (R-PA) John Kyl (R-AZ) Rob Portman (R-OH)
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Deficit Reduction FallbackIf Super Committee bill is passed by January 15,
2012:Automatic spending reductions of amount full
$1.2 billion or any shortfallDiscretionary caps revised: equally split between
security and non-security (note)Proportional division between discretionary and
direct spendingCertain direct spending exempt or limited (Social
Security, Medicaid, and others, Medicare – 2%)Spending reductions beginning January 2, 2013