On January 17, the Congressional Budget Office (CBO) reported that Congress appropriated $261 billion in FY 2012 for agencies and programs that are not authorized, about $30 billion less than the last time unauthorized spending was measured in FY 2010. The report cited several large agencies including the National Institutes of Health, the Coast Guard and the Community Development Block Grant Program. The report is required by the 1974 Budget Act and is intended to help Congress determine authorization legislation that should be enacted before it begins considering the annual appropriations bills.

On January 18, CBO released an issue brief that examined demonstration projects for disease management, care coordination and value-payment systems and assessed their respective impact on cost reductions in Medicare. According to the report, most demonstrations produced little or no savings for Medicare; however, the results for value-based payment systems demonstrations were mixed. Results in one of the four value-based payment systems demonstrations reduced Medicare’s spending for those services by about 10 percent.

Links: CBO Report on Unauthorized Spending, CBO Demonstration Project Issue Brief