•HCON 113 IH 
year, and under the Congressional Budget Of-
fice’s alternative fiscal scenario, direct spending 
on Medicare is projected to reach 7 percent of 
GDP by 2035 and 14 percent of GDP by 2085. 
(3) Failing to address this problem will leave 
millions of American seniors without adequate health 
security and younger generations burdened with 
enormous debt to pay for spending levels that cannot 
be sustained. 
(b) POLICY ON MEDICARE REFORM.—It is the policy 
of this resolution to protect those in and near retirement 
from any disruptions to their Medicare benefits and offer 
future beneficiaries the same health care options available 
to Members of Congress. 
(c) ASSUMPTIONS.—This resolution assumes reform 
of the Medicare program such that: 
(1) Current Medicare benefits are preserved for 
those in and near retirement, without changes. 
(2) For future generations, when they reach eli-
gibility, Medicare is reformed to provide a premium 
support payment and a selection of guaranteed 
health coverage options from which recipients can 
choose a plan that best suits their needs. 
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•HCON 113 IH 
(3) Medicare will provide additional assistance 
for lower-income beneficiaries and those with greater 
health risks. 
(4) Medicare spending is put on a sustainable 
path and the Medicare program becomes solvent 
over the long term. 
SEC. 507. POLICY STATEMENT ON DEFICIT REDUCTION 
THROUGH THE CANCELLATION OF UNOBLI-
GATED BALANCES. 
(a) FINDINGS.—The House finds the following: 
(1) According to the Office of Management and 
Budget, Federal agencies will hold $698 billion in 
unobligated balances at the close of fiscal year 2013. 
(2) These funds represent direct and discre-
tionary spending made available by Congress that 
remain available for expenditure beyond the fiscal 
year for which they are provided. 
(3) In some cases, agencies are granted funding 
and it remains available for obligation indefinitely. 
(4) The Congressional Budget and Impound-
ment Control Act of 1974 requires the Office of 
Management and Budget to make funds available to 
agencies for obligation and prohibits the Administra-
tion from withholding or cancelling unobligated 
funds unless approved by an act of Congress. 
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(5) Greater congressional oversight is required 
to review and identify potential savings from 
unneeded balances of funds. 
(b) POLICY ON DEFICIT REDUCTION THROUGH THE 
CANCELLATION OF UNOBLIGATED BALANCES.—Congres-
sional committees shall through their oversight activities 
identify and achieve savings through the cancellation or 
rescission of unobligated balances that neither abrogate 
contractual obligations of the Federal Government nor re-
duce or disrupt Federal commitments under programs 
such as Social Security, veterans’ affairs, national secu-
rity, and Treasury authority to finance the national debt. 
(c) DEFICIT REDUCTION.—Congress, with the assist-
ance of the Government Accountability Office, the Inspec-
tors General, and other appropriate agencies should make 
it a high priority to review unobligated balances and iden-
tify savings for deficit reduction. 
SEC. 508. POLICY STATEMENT ON BLOCK GRANTING MED-
ICAID. 
It is the policy of this resolution that Medicaid and 
the Children’s Health Insurance Program (CHIP) should 
be block granted to the States by enacting the State 
Health Flexibility Act of 2012 (H.R. 4160) as introduced 
on March 7, 2012. 
Æ 
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