Humans are the most valuable resources on this earth. The progress of a country depends on how healthy the human resources are. Health care is constitutionally a provincial domain. The federal government has designed various plans to keep everyone healthy like Medicaid, Medicare and CHIP. The importance of funding on health care can never be questioned unlike the spending on military. Under this kind of plans the federal government sponsors or completely funds the healthcare expenditures for the citizens.

The effect of federal budget on the healthcare sector

Looking in to the effects of this cut in healthcare system, it found that more than 20,000 medical research jobs will be impacted. More than 2,000 ongoing projects will be a victim. The 2% cut in Medicare will result in more than 200,000 health jobs in 2013 alone and much more in later years. Although the cut is not applicable to Medicaid and the State Children’s Health Insurance, most other health programs are in danger. The Food and Drug Administration, faces nearly 8 percent cut which results in difficulty in retaining the good people. The service quality in hospitals is also affected accordingly. The dangerous effect is also in food and drugs inception. Due to tis cut FDA would also have to conduct about 2,100 fewer food safety inspections, according to data from the Health and Human Services Department. The doctors in hospital would see a 2 percent cut (assuming the cut is distributed equally). Study shows that since 2001, the Medicare pays for physician only saw an increase of 4% while the cost of patient care increased by 20%. So this cut would make to more difficult to provide good health service. According to the CBO estimates, 2%reduction will result in a $9.9 billion reduction in payments to hospitals, physician services and drug plans which could impact childhood vaccines, public and mental health programs, and clinical research. This budget cut affects important federal agencies including the National Institutes of Health (NIH), FDA, Mental health and substance abuse services and AIDS and HIV treatment in form of reduced health checking, food & drug quality testing,  low research activity etc. The manufacture companies will be also affected.

Although many experts says that this cut will be temporarily only, many hospital executive and physician better look for tight measures  including preparation for reduced payments, review of research budgets, population health changes etc. There has been protest against this unwelcomed decision of federal government. People are demanding Congress to prevent cuts to healthcare, and social service programs instead close corporate tax loopholes; raise income taxes on top earners; and reduce military spending.

In essence the cut in healthcare is unwelcome and more importance should be given to healthcare, after all humans are the most valuable resources available.