As President Obama and Congressional leaders continue to work toward a debt reduction deal that would accompany an upcoming vote to raise the federal debt ceiling, it is becoming increasingly clear that any such deal could include significant cuts to Medicare and Medicaid.

From hospitals to skilled nursing facilities to mental health providers, all facets of the healthcare industry are gearing up for potential reimbursement reductions. Such cuts may include: Reverting back to state Medicaid coverage for “dual-eligibles” (those eligible for both Medicare and Medicaid), with a savings of $115 billion over 10 years; Medicare reimbursement cuts to inpatient hospital care and to graduate medical education, with an estimated savings of $15 billion to $20 billion; $30 billion in savings by trimming health insurance exchange subsidies for those in higher income brackets; and payment reductions to home health agencies, long term care hospitals and skilled nursing facilities, with an estimated savings of $15 to $20 billion.

Specific details remain under wraps as lawmakers continue to meet at the White House and behind the scenes, in hopes of hammering out an agreement before August 2 – the date the Treasury Department has said the federal government will face default on its loans without the debt ceiling increase.