Looking Ahead
Looking Ahead

On April 10th, President Obama released his proposed 2014 budget that is intended to mitigate the effects of this year’s sequestration cuts. The budget includes $80.1 billion in discretionary funds for the Department of Health and Human Services (HHS) – nearly $4 billion more than what was enacted in FY 2013. Of this amount, $130 million will be allocated towards a new initiative that aims to educate teachers and other adults to recognize mental illness in young people, and train 5,000 mental health professionals to diagnose and treat youth. The budget will also provide the Center for Disease Control and Prevention (CDC), in conjunction with the Health Resources and Services Administration (HRSA), an additional $30 million for HIV/AIDS prevention and treatment activities. Furthermore, federal funding will facilitate upcoming health insurance exchanges related to the Affordable Care Act, and support state’s efforts in Medicaid expansion. While this forecast affords renewed hope to the health care sector, it remains that the House of representatives has already passed a budgetary framework that is substantially different from the President’s. This variation will require negotiations between the Senate and the House that regard presenting a budget for the President’s approval. However, a consensus is unlikely, due to the presiding political climate in Washington. Thus, it is anticipated that the government will have to abide by the current continuing resolution agreed to in March until the end of its fiscal year on September 30th. It is worth noting that the federal debt ceiling was suspended until May 18th, and subsequent debates in July or August on raising this threshold may affect funding levels.

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