President Barack Obama's proposed fiscal 2013 budget was released on Monday. It includes the provision that drug manufacturers would be obliged to offer discounts of $156 billion over the next ten years to underprivileged senior citizens on the sale of medicines. The President's proposals, however, will become law only if they are included in legislation to raise the government's debt limit. The gamut of changes to Medicare (health insurance program for the elderly and disabled) and Medicaid (health plan for the poor) that the administration's budget request contains, would help save $362 billion over a decade. This would eventually slow down spending on medicines. Huge brands in the US that manufacturer drugs already provide rebates of about 15 percent on the price of medicines under Medicaid. The Obama administration is proposing that this benefit be extended to cover the 'dual eligibles', about 9 million elderly citizens who qualify for both Medicare and Medicaid. Medicare and Medicaid are different payment programs, and hence people insured under Medicare get significantly lower discounts and pay higher prices for drugs than people insured under Medicaid. Source: Medindia << Multiple Ethnicities Covered by Genetic Risks for Type 2 Dia... US Health Insurance Cos may Become Extinct by 2020, Say Exp... >> Recommended Reading Gillard Will Enact Private Health Insurance Law to Make Oz Rich Pay Oz PM Julia Gillard is confident on getting legislation through federal parliament on the issue of discounted private health insurance for wealthier Australians. READ MORE US Unveils New Rules to Help Citizens Find the Right Health Insurance Plan The new government-approved format that health insurance companies must provide on their services to Americans, was unveiled on Thursday. READ MORE IRDA Proposes Health Insurance for HIV Infected People If the Insurance Regulatory Development Authority (IRDA) has its way, then people infected with HIV have a cause for celebration - they will soon have health insurance. READ MORE Drug Toxicity Drug toxicity is an adverse reaction of the body towards a drug that results as a side effect of a drug, reaction to a drug or drug abuse. READ MORE Drugs Banned in India Several drugs are either banned or withdrawn after introduction in the market. READ MORE What is Medicare / Medicaid? Medicaid / Medicare are different governmental programs that provide medical and health-related services to specific groups of people in U.S. and managed by Centers for Medicare and Medicaid Services. READ MORE Most Popular on Medindia Diaphragmatic Hernia The Essence of Yoga Post-Nasal Drip More News on: Drug ToxicityDrugs Banned in IndiaWhat is Medicare / Medicaid?