As discussed in our September 19, 2011 Special Report, President Obama presented his deficit reduction plan – including $320 billion in proposed federal health spending cuts – to the Joint Select Committee on Deficit Reduction on September 19, 2011. By way of background, the panel was created by the Budget Control Act of 2011 to craft legislation to cut the federal deficit by at least $1.5 trillion. If legislation achieving budget targets is not adopted by January 2012, $1.2 trillion in across-the-board spending cuts would be triggered, effective January 2013. President Obama’s plan (which the Committee is not obligated to follow) would cut Medicare spending by about $248 billion over 10 years, with more than half of the savings coming from new Medicare drug rebates. Medicaid and other health funding also would be reduced by about $72 billion. The White House is circulating the legislative text of President Obama’s plan, which offers additional details on the Medicare and Medicaid spending and program integrity proposals.