President Obama have introduced a wide-ranging expense cutting on Medicare and Medicaid for the grant of 250 and 65 billion United States Dollars for the next decade. These offers will be effective for next financial year’s budget i.e., year 2013. This offer consists of cost cutting incentives for Medicare facilities and it also reveals that people will get more flexible prices in order to get medical facilities. Federal expenditure plan which was intended for the prosperity of senior citizens has been decided to postpone for up coming three year and then it will be implemented. This proposal provides that the finance ministry is intending to cover up the budget deficit which is being faced on lifting drifts by some previous years.