Over 1.2 Million could Lose Health Coverage

Senate To Cut $11 Billion Over Five Years

WASHINGTON, D.C. - The Senate Budget Committee approved yesterday a resolution that would cut $11 billion from Medicaid over the next five years.  Over 1.2 million children, seniors and people with disabilities may lose access to health care coverage and services under this budget resolution, according to consumer health care watchdog organization Families USA.

If the proposed Medicaid cuts were applied with across-the-board eligibility reductions, according to numbers released today by Families USA, more than 850,000 children, 31,000 seniors, 19,000 people with disabilities, and 320,000 working parents would lose access to health care coverage.

"This proposal will cause irreparable harm to numerous low-income children, seniors and people with disabilities," said Ron Pollack, Executive Director of Families USA.  "At a time when the number of uninsured last year increased at the highest rate in a decade, it is unconscionable that Congress would propose cutting access to health care for Americans who can least afford health care.

"As a result of this proposal, more and more Americans who rely on Medicaid will become uninsured.  In the meantime, neither the President's budget nor the Senate budget resolution provide any relief for the nearly 44 million Americans already struggling without health insurance," said Pollack.  "Congress should not cut funding from this immensely important health insurance program." 

Next week, the House Budget Committee will begin consideration of its budget proposal and the budget resolutions will be brought to the floor of the Senate and House very soon.  A conference committee to reconcile these proposals will begin as early as this month.  The final budget report will guide Medicaid funding for fiscal year 2005.

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org