President Obama today proposed reducing Medicare spending $248 billion over 10 years and Medicaid spending $72 billion over the same time period as part of a $3.2 trillion deficit reduction package that did not include raising Medicare's eligibility age.

The White House said 90 percent of the Medicare savings, or $224 billion, would come from reducing overpayments. Savings affecting beneficiaries do not begin until 2017, it added.

The proposal would affect the payments of a wide variety of health care providers, including drug companies, hospitals, nursing homes, and home health agencies. The plan also would strengthen health care fraud and abuse activities and increase costs for new beneficiaries by imposing higher Part B deductibles and introducing cost-sharing for home health services.

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