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MONDAY, Feb. 6 (HealthDay News) — The U.S. Department of Health and Human Services’ proposed budget for fiscal year 2007, unveiled Monday, highlights increased funding for a potential bird flu pandemic and bioterrorism and for those battling HIV/AIDS.

Medicare and the U.S. Centers for Disease Control and Prevention, however, were clear losers, with funding cuts on the horizon for both agencies.

“I want to characterize this budget as a responsible budget,” HHS Secretary Mike Leavitt said at a news conference Monday. “Laced through it is a series of themes that characterize our commitment. One is to protect the health of Americans against the threat of bioterrorism and pandemics. One is to provide care for those who need it. This budget protects life, family, human dignity and enhances the long-term health of our citizens and improves the human condition throughout the world.”

President Bush has asked Congress to earmark $698 billion for HHS, an increase of $58 billion, or 9.1 percent, over fiscal year 2006.

The HHS budget was part of an overall $2.77 trillion budget submitted by Bush Monday, which includes proposals to promote Health Savings Accounts (HSAs), vehicles aimed at helping individuals and families save for their own future health care needs.

In keeping with the president’s goal of slashing the deficit, the new HHS budget calls for a reduction in discretionary spending as well as new mandatory savings proposals.

“We had to make hard choices about very well-intentioned programs,” Leavitt said. “Hard choices had to be made, and this budget reflects our effort to make those in the wisest way.”

The HHS budget calls for a 4 percent increase in bioterrorism spending, bringing it to a total of $4.4 billion. Among other things, the funds will increase medicines and supplies in the national stockpile.

“We must never forget that we are a nation at war,” Leavitt said. “We have to be prepared to respond to that.”

Pandemic preparedness — prompted by ongoing concerns about bird flu — also received a boost, with an emergency budget request of $6.7 billion in fiscal year 2006 to fund a three-year plan against such a pandemic.

The 2007 budget includes a $2.3 billion allowance, again for pandemic preparedness, for expanding domestic vaccine production and surge capacities, antiviral stockpiles, research and development on new drugs and vaccines and supplies for the Strategic National Stockpile.

A total of $188 million will enable an additional 3 million Americans to get tested for HIV/AIDS and will get people off HIV/AIDS waiting lists and into treatment programs. Another $490 million is earmarked for the global fight against HIV/AIDS.

The U.S. Food and Drug Administration would increase its budget by 4.5 percent to $1.9 billion, primarily to enhance prescription drug and food safety.

The 0.7 percent increase in the budget of the National Institutes of Health essentially amounts to stagnation.

Medicare, on the other hand, is subject to a number of “adjustments,” that are expected to “produce substantial savings,” Leavitt said. Medicare’s growth rate will be cut by about 1.5 percent.

Patient advocates were not happy with the proposals.

“AARP has serious concerns with a number of the President’s provisions,” the group said in a prepared statement. “AARP is most concerned about proposed cuts to Medicare spending that will shift costs to beneficiaries and force more to pay higher Medicare premiums.”

“The President’s budget would cut Medicare spending by another $35 billion; cap federal revenues to Medicare; shift more out-of-pocket costs to beneficiaries; and force more beneficiaries to pay higher Part B premiums,” the statement continued.

Under the plan, payments to healthcare providers would be reduced and high-income beneficiaries would be forced to pay higher premiums.

Net savings from the Medicare package total $2.5 billion in for fiscal 2007 and $35.9 billion over five years.

The U.S. Centers for Disease Control and Prevention (CDC) also took a hit: a 9 percent decrease in its budget to $6.9 billion.

“We’re doing the same thing others are doing,” CDC director Dr. Julie Gerberding told the news conference. “We have to look at opportunities for us to invest resources to have the best possible impact and at some programs that have been around for long time that may not be doing as well.”

“Budgets are an investment in the future,” Leavitt concluded. “This is a responsible forward-looking budget that reflects our hopeful outlook and sets us on the path to get there.”

More information

For more on the proposed 2007 budget, visit the U.S. Department of Health and Human Services.