Lower Spending on Medicare, Medicaid Seen

WASHINGTON —  The Congressional Budget Office released new forecasts Thursday showing lower-than-expected spending for the federal Medicare and Medicaid programs during the next five years.

The new projections show overall spending under the Medicare program for the nation’s elderly running $40 billion below previous April 1996 projections for the five-year period.

Federal spending on Medicaid, which provides health care for the poor, elderly and disabled, will be $82 billion less than previously expected over that time frame.

The projections are important because they will form the basis for balanced-budget negotiations between the White House and Congress.

The politically popular Medicare program, which provides health insurance to 38 million senior citizens, is expected to be a key point of contention in budget negotiations between the White House and congressional Republicans.

President Clinton is expected to send Congress a budget plan next month calling for about $100 billion in Medicare reductions over five years. The reductions will come mainly from cuts to doctors, hospitals and other health providers.

The White House is not expected to call for any increase in Medicare premiums.