OBAMA'S HEALTH PLAN: CUT $313B, STAT!

Image by Getty Images via Daylife

President Obama today outlined a $313 billion cost-cutting plan to slash the government's exploding health-care expenses by lowering reimbursements to hospitals and payments to pharmaceutical companies.

In his weekly YouTube and radio address, the president said the reductions will come over a 10-year period as his administration helps more uninsured Americans obtain coverage and the government negotiates better prices on prescription drugs.

"For too long, we have stood by while our health-care system has frayed at the seams," he said. "While there has been excuse after excuse to delay reform, the price of care has gone up for individuals, for business and for the government."

Obama has vowed to make health care a top priority in his administration, and he has previously detailed $635 billion in health-care cuts in his 2010 budget and nearly $1 trillion in savings over the next decade.

The newest cuts include $216 billion from lowering payments to hospitals that treat the uninsured, and decreasing Medicare payments to reflect productivity improvements that have reduced health-care provider costs.

Obama also plans to save $75 billion by working with the pharmaceutical industry to lower reimbursements for Medicare and Medicaid recipients.