Ron Pollack, executive director of Families USA, released the following statement today in response to President Bush's budget proposal:
"The budget released today by President Bush does not add up to the health care promises he made to the American people in his State of the Union address. The President's budget falls far short of the fiscal commitment needed to fulfill his promise of 'quality, affordable health [care] for all.'
"Even worse, the Administration's proposals to coerce seniors into HMOs and managed care plans, and its proposal to create a block grant in lieu of Medicaid coverage for millions of low-income families, will do considerable harm. These proposals will force seniors to lose their doctors and will cause many of the most vulnerable people to join the ranks of the uninsured.
Medicare and Prescription Drugs:
"President Bush's budget includes $400 billion for both Medicare restructuring and prescription drug coverage over the next ten years. Unfortunately, $400 billion only covers a very meager share of seniors' prescription drug costs, which are projected to total $2 trillion over the same ten-year period.
"The President's new proposal to force seniors into private health plans, as a condition for receiving prescription drug coverage, pressures seniors into choosing between the drug coverage they so desperately need and the doctors they have come to depend on.
"Private health plans participating in Medicare have a poor record serving seniors. They are unavailable in many rural communities, and they frequently leave communities that are deemed unprofitable. The private plans that continue to enroll seniors are, with each passing year, significantly increasing seniors' costs and decreasing the services offered.
"The coupling of prescription drug coverage with enrollment in HMOs and managed care plans will make it much more difficult to enact prescription drug coverage in this Congress. President Bush should not hold seniors' prescription drug coverage hostage to the achievement of his goal to privatize Medicare.
Medicaid:
"The President's Medicaid budget represents a cruel hoax for three very important reasons. First, the President offers a slight increase in Medicaid funding in the first years, but then reduces such funding in the later years. Over the long term, this proposal would significantly reduce the federal aid needed to sustain Medicaid coverage for low-income families.
"Second, the President's proposal would establish ironclad caps in federal funding for health care to low-income families. As a result, when the economy turns sour, or health care costs skyrocket, or more people become uninsured, states will have a diminished capacity to meet their needs.
"Third, the President's proposal offers modest upfront money in a manner that is reminiscent of a loan shark. The modest upfront money comes attached with a heavy cost-less money in the long run and much less fiscal flexibility in future years. In effect, the Bush Administration is forcing cash-strapped states to buy into a very bad deal so that they can receive quick money now.
"The President's proposed block grant is similar to the failed proposal in 1995 by then-Speaker Newt Gingrich. This block grant will force states to ration care by limiting the number of people enrolled in Medicaid, reducing the services covered, and increasing the amount of money low-income people must pay.
Access:
"Once again, the President included $89 billion over ten years in his budget for health tax credits. The tax credit proposed is far too small to make health coverage affordable for the low-wage workers targeted for this plan. It is like throwing a 10-foot rope to a person stuck in a 40-foot hole.
"Also, in these tough economic times, the proposed tax credit offers no relief for many recently unemployed workers because the tax credit cannot be used to continue employer-based coverage through COBRA. Thus, this proposal does not reflect the President's promise to reduce the number of uninsured Americans."
