WASHINGTON (Reuters) - President Barack Obamaon Saturday proposed an additional $313 billion in cuts to Medicare, Medicaid and other programs to pay for healthcare reforms expected to cost about $1 trillion over the next decade.

"I know some question whether we can afford to act this year. But the unmistakable truth is that it would be irresponsible to not act," Obama said in an advance text of his weekly radio address.

Obama wants a healthcare reform bill on his desk by October, but faces opposition from Republicans who oppose creation of a government-run insurance plan to compete with private insurers.

Many of his fellow Democrats are wary of making deep cuts to Medicare and Medicaid, the U.S. healthcare programs for seniors and poor people, to pay for reforms.

With the cost of U.S. healthcare continuing to rise rapidly, Obama argued the country could not afford to wait another year for sweeping changes.

But he acknowledged the ambitious plan would increase government costs in the short run.

To address those concerns, Obama has pledged to come up with enough spending cuts and new revenue to pay for reforms.

"So today, I am announcing an additional $313 billion in savings that will rein in unnecessary spending, and increase efficiency and the quality of care -- savings that will ensure that we have nearly $950 billion set aside to offset the cost of health care reform over the next ten years," Obama said.

About $110 billion of the new cuts would come from reducing scheduled increases in Medicare payments. That would encourage healthcare providers to increase productivity, White House budget director Peter Orszag told reporters.

Full story