MEDICAID BUDGET CUTS WILL CAUSE HARM TO AMERICA’S LOW-INCOME SENIORS AND CHILDREN

Previous Senate and House Votes Protecting Medicaid Are Nullified by Budget Agreement

Leaders of the Senate and House Budget Committees announced a federal budget agreement today that includes approximately $10 billion in Medicaid cutbacks over the next five years. The following is the statement of Ron Pollack, Executive Director of Families USA, about this development:

"The proposed $10 billion in Medicaid cutbacks will not only shift huge financial burdens to the states and cause health care cutbacks for America's seniors and children, but it nullifies the crucial principles adopted by the Senate last month and by the House earlier this week.

"On March 17 the Senate voted that Medicaid budget changes should not be arbitrarily decided but, rather, should only occur after a bipartisan commission has the opportunity to determine the program's future directions. The House adopted a similar resolution on April 26. This agreement, however, places the cart before the horse by arbitrarily agreeing to large Medicaid cutbacks, even though a commission has not yet been appointed.

"To add insult to injury, it also appears that a very partisan Medicaid commission may be appointed by the Bush administration. This is the precise opposite of what was originally intended and will make it a sham commission.

"The $10 billion in Medicaid budget cuts are considerably larger than the Bush Administration's initial proposal that would have reduced federal Medicaid funding by $7.6 billion.

"It is disgraceful that Congress is poised to adopt a federal budget that cuts $70 billion in estate and capital gains taxes for the richest people while, at the same time, it slashes funding for seniors and children who count on Medicaid for their very survival." 

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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