Ron Pollack, executive director of Families USA, released the following statement today in response to President Bush's budget proposal:
"In this time of economic recession, the American people need to be reassured that our health care system is stable and available when they need it most. The President's budget proposal does little to comfort the American people.
"The President's health care budget provides very little relief for seniors this year, allocating far less than will be needed to provide Medicare beneficiaries a meaningful drug benefit. With respect to the growing number of uninsured, the President's plan to offer individual tax credits to the uninsured fails to make health coverage affordable for low-income workers. Indeed, the Administration's tax-credit proposal is leading the American people down a dangerous path.
Prescription Drugs:
"Seniors are harmfully affected by drug prices that continue to skyrocket faster than inflation. Unfortunately, the President is allocating far less for prescription drug relief than was in his budget last year. Over the next four fiscal years, the President proposes adding merely $13.2 billion to pay for a low-income senior drug benefit, compared to the $48 billion he proposed last year. This is a huge step backward in terms of the Administration's fiscal commitment to a much-needed prescription drug benefit in Medicare.
"In addition to the limited fiscal commitment made by the President, there are several serious limitations to his proposal. His proposal would only provide relief to widows and other seniors living alone if their incomes fall below $13,000. Moreover, it is doubtful that the President's proposal will be helpful since it depends on states providing matching funds - a requirement that many states will be unwilling to shoulder given their own tight budgets. In effect, therefore, the President's budget offers little in terms of prescription drug relief for America's seniors.
Access:
"The President is proposing $89 billion for the uninsured. While we welcome new funds for the uninsured, the Bush proposal for spending these new funds may result in more harm than good.
"Bush's plan offers no real solutions for the uninsured. The individual tax credits proposed by the Bush Administration are far too small to make health coverage affordable for low-income workers. A recent Families USA study of 25 states shows that even a healthy 25-year-old woman pays an average of $4,734 for a standard health plan, well above the $1000 tax credit being offered. Low-income workers across America will either find health premiums unaffordable or will only be able to buy Swiss cheese-type policies with more holes than cheese.
"Additionally, the Bush proposal is designed to convert America's employer-based health system to an individual-based insurance system. In the process, people with health problems and disabilities are likely to lose the health coverage they have today because few, if any, insurance companies will be willing to sell coverage to them. The Bush plan, therefore, constitutes a step backwards in the provision of health coverage."
"Congress should use the money allocated for health care to provide real solutions. We urge Congress to build on their commitment to decrease the number of uninsured in this country and provide seniors with a meaningful drug benefit, while ensuring the long-term strength of the Medicare program."
