Balanced Budget Act of 1997

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The Balanced Budget Act of 1997, (Pub.L. 105–33, 111 Stat. 251, enacted August 5, 1997), was an omnibus legislative package enacted using the budget reconciliation process and designed to balance the federal budget by 2002.

According to the Congressional Budget Office, the act would result in $160 billion in spending reductions between 1998 and 2002. After taking into account an increase in spending on Welfare and Children's Healthcare, the savings total $127 billion. Medicare cuts are responsible for $112 billion, and hospital inpatient and outpatient payments cover $44 billion. [1] In order to reduce Medicare spending, it reduced payments to health service providers such as hospitals, doctors and nurse practitioners.[2] However, some of those changes to payments were restored by subsequent legislation in 1999 and 2000.

See also[edit]


  1. ^ "The Impact of the BBA and the BBRA." Trend Watch 2 (Mar. 2000): 1. American Hospital Association. Web. 23 Feb. 2011. <>.
  2. ^ Klein, Ezra. "What to do about the doc fix?". Washington Post. Retrieved 2010-06-21. 

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