Omnibus Reconciliation Act of 1989
The Omnibus Reconciliation Act of 1989 contained what President George W. Bush called "significant deficit-reduction measures for fiscal year 1990." It was designed to reduce the national deficit by $14 billion.
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Description
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The Omnibus Reconciliation Act of 1989 targeted deficit reduction by creating new laws and regulations that cut spending in targeted areas, but it also amended portions of previous budget policies, including the Tax Reform Act of 1986 and the Revenue Act of 1987. One amendment to the Tax Reform Act of 1986 allows some Medicare recipients to transfer part of their previous health benefits to a beneficiary in certain conditions. Part of the Revenue Act of 1987 amendments revised taxes on diesel fuel and aviation fuel.
Components
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The Omnibus Reconciliation Act of 1989 enacted changes to student loan procedures, Medicare and Medicaid policies, and COBRA medical coverage. Limits on physician balance building were enacted for Medicare. Changes to student loan procedures required lenders to grant borrowers forbearance from student loan repayments during certain medical internships. The law established the Physician Payment Review Commission to review physician fees under State Medicaid programs and the bill also provided an 11-month extension period beyond COBRA coverage for people with disabilities.
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Significance
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Agriculture and student aid reforms comprised major portions of the law, but changes in Medicare and Medicaid were among the most significant. One change in agriculture regulations cut farmers' targeted export assistance from $325 million to $200 million. Many changes were intended to ensure patients were billed fairly.
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References
- The Library of Congress: Bill Summary and Status 101st Congress (1989 - 1990) H.R.3299 CRS Summary
- The American Presidency Project: Statement on Signing the Omnibus Budget Reconciliation Act of 1989
- Highbeam Research: Omnibus Budget Reconciliation Act of 1989, Public Law 101-239
- Bnet: Omnibus Budget Reconciliation Act of 1989, Public Law 101-239
- City and County of Honolulu Elderly Affairs Division: Omnibus Budget Reconciliation Act of 1989 (OBRA)
- Photo Credit the capitol building in washington d.c. image by Gary from Fotolia.com
