Medical Device Daily Washington Writer

The Obama administration Thursday unveiled more details about the $3.4 trillion fiscal 2010 federal budget approved by Congress last week, including the president's desire to trim it by one-half of 1% and eliminate 121 programs.

Overall, the budget includes a total of $879 billion for the Department of Health and Human Services (HHS), a $63 billion increase over fiscal year 2009, noted Secretary Kathleen Sebelius.

She insisted that the administration viewed the budget as more than just "spreadsheets or numbers on a page," but rather as "investments in health and strength in our communities, our families and our nation.

"President Obama's HHS budget puts reform first," she said. "It's a budget that builds on the critical investments made in the recovery act to protect public health, fight fraud and abuse, move closer to comprehensive health reform and supports the critical work our department does each and everyday."

Included in the 2010 budget is a request for $584 million for ongoing efforts to prepare and combat pandemic flu, which Sebelius noted was over and above the $1.5 billion in supplemental resources that Obama requested for the fiscal year 2009 budget.

The outbreak of the 2009 H1N1 swine-origin influenza A virus has placed a spotlight on the importance of protecting the public health, Sebelius said.

The increased funding in the 2010 budget, she said, would allow the nation to develop, produce and distribute antivirals, vaccines, protective equipment and other medical countermeasures and "make sure we stay on top of the H1N1 preparedness efforts and are well prepared if this flu comes roaring back in regular flu season in the fall and winter."

The administration was able to respond "quickly, strategically and effectively" to the current outbreak "because we had resources and because preparation had been underway well before this viral strain was identified," Sebelius argued. "This budget and the recommendations by the president will help us stay prepared and make sure that resources remain available, which is so critical to the health of the nation."

The budget also includes a spending increase of $511 million for the FDA, which Sebelius noted was "the largest increase ever requested."

About half of those funds will be devoted to food safety, she said, adding that it will allow for the number of food safety inspectors to be increased by 20% next year.

"While we know fighting diseases and outbreaks is one way to protect the health of all Americans, protecting the public health through our food supply is another critical issue," Sebelius said. "Consumers have seen recalls of spinach and peanuts to pistachios, and the president has the Food and Drug Administration as a priority to modernizing our food safety systems. The budget makes the kinds of increased investments that will help protect our food supply."

Another target in the budget, Sebelius said, is health reform.

She noted that the 2010 budget establishes a health care reserve fund of $635 billion over 10 years to finance the president's health reform plan.

"These investments are critical and will provide and protect the American people improving public health," Sebelius said. "We know we must do more to protect the health of the nation. Comprehensive health reform is not optional. If we fail to take action the costs will only get worse."

Sebelius noted that the 2010 budget includes increased funding of $311 million aimed at fighting Medicare and Medicaid fraud and abuse.

"For every $1 we spend to stop fraud in the system, we save $1.55," Sebelius declared. She said the increased funding represented a multi-year antifraud strategy, which the administration expected would result in up to $2.7 billion in savings.

The president initially released his proposed budget in February, which also includes an increase for the National Cancer Institute.