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Drug Spending Targeted in Obama’s $320 Billion Health Cut

President Barack Obama’s deficit-trimming proposal would cut $320 billion from U.S. health programs in prescription drug and nursing home spending and by increasing individuals’ payments for Medicare coverage.

The biggest reduction is $135 billion in drug prices the government pays companies led by New York-based Pfizer Inc. and Merck & Co. of Whitehouse Station, New Jersey, for low-income beneficiaries. The White House released its plan today.