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Medicaid Cuts |
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$11 BILLION IN MEDICAID CUTS PROPOSED DEADLINE FOR SIGN ON MONDAY, MAR. 8, NOON
VOR URGENT ACTION ALERT
March 5, 2004 ============================================= Table of Contents 1. VOR introductory letter 2. Action Required: Two ways to help *Sign on letter for organizations: Due Monday, March 8, 2004 by NOON eastern *Call or fax your senators: All next week 3. Sign on letter and template letter 4. Sign on form for ORGANIZATIONS (to be returned to Families USA) 5. From National Health Law Program: Background on Medicaid cut proposal ============================================= ------------------------------------- 1. VOR introductory letter ------------------------------------ Dear VOR Members, We have been alerted by Families USA to a Senate budget resolution proposal that includes devastating cuts to the Medicaid program. The bottom line: $11 billion in cuts over five years to Medicaid. The draft proposal does not include any specific proposals on how to cut Medicaid so the cuts could come from anywhere, including the ICFs/MR and home and community-based programs. These cuts could be realized in how eligibility is determined for all Medicaid programs (fewer people could be eligible) or in cuts in funding for critical services.
The Senate budget resolution proposal will be debated next week. Now is the time for advocates to speak up and out against these cuts. If the budget resolution passes (only 50 votes are needed), it will be very difficult challenge these cuts during the actual appropriation process.
------------------------------------------------------- 2. Action Required: Two ways to help -------------------------------------------------------
SIGN ON LETTER
Families USA is distributing a sign on letter (pasted below and attached) for state and national ORGANIZATIONS (not individuals). If you represent an organization, please fax back the attached sign on permission form (which is also pasted below) to: 202-347-2417 (attn: Emily Cooper), or e-mail
CALL OR FAX YOUR SENATOR
Using the template letter below, or your own words, contact your Senators expressing your opposition and urge them NOT to support cuts to Medicaid.
You can get contact information from http://www.congress.org.
---------------------------------------------------- 3. Sign on letter and template letter ----------------------------------------------------
[This letter can also be used, with minor additions, as your own individual template letter]
Dear Member,
The undersigned organizations strongly oppose the Medicaid cuts included in fiscal year 2005 budget resolution, especially the reconciliation instructions that require the Finance Committee to cut entitlement spending. During the Budget Committee mark up, Chairman Nickles stated that his budget plan assumes that the Finance Committee will cut Medicaid $11 billion over the next five years. Such cuts would irreparably harm the more than 51 million Americans who rely on Medicaid for their health care lifeline, and reduce reimbursement to critical health care provider.
Medicaid provides health insurance to America's most vulnerable seniors, children, pregnant women, working families, and people with disabilities. Seniors receive prescription drug coverage and long-term care services through Medicaid. Children obtain vital screening and prevention services under Medicaid. Nearly one in ten American women-and one-third of all poor women-rely on the Medicaid program for their health care. Medicaid also provides the crucial services such as long term supports and services and therapy that people with disabilities need.
The Senate Budget Committee's resolution would require deep entitlement cuts as part of a reconciliation bill, and the $11 billion cut to Medicaid is assumed to be a part of that bill. Such devastating cuts will create enormous hardship for states and threaten the health security of the Americans who rely on Medicaid for their essential health care services. These cuts would occur as states are beginning to recover from the most severe budget crisis since World War II. States need more, not less, federal Medicaid funding to sustain their current Medicaid programs and avoid both instituting even greater cutbacks that add to the ranks of the uninsured and further shifting costs to health care providers.
We urge the Senate to oppose any Medicaid cuts in the fiscal year 2005 budget and to actively work to eliminate the reconciliation instructions requiring these unacceptable cuts. We also ask you to oppose any cuts to Medicaid in the final budget resolution conference report adopted by Congress.
--------------------------------------------------------------------------- 4. Sign on form for ORGANIZATIONS (to be returned to Families USA) ---------------------------------------------------------------------------
Please return to Emily Cooper at Families USA a.s.a.p. but no later than the NOON on Monday, March 8, 2004 E-mail: ecooper@familiesusa.org Fax: (202) 347-2417, attention Emily Cooper
If you have any questions, please contact Emily Cooper or Lena O'Rourke at (202) 628-3030. ___________________________________________________________________
Yes, my organization will sign on to the letter opposing Medicaid cuts in the Senate FY2005 budget.
Your name:_________________________________________
Exact name of your organization for the listing:
__________________________________________________
Type of Organization: (please check one) ___National ___ State or Local
Address:___________________________________________
__________________________(Zip + 4)__________ - ______
Phone #:____________________________________________
Fax #: __________________________________________
E-mail address: ___________________________________
--------------------------------------------------------------------------- 5. From National Health Law Program: Background on Medicaid cut proposal ---------------------------------------------------------------------------
See also: The Center on Budget and Policy Priorities has an in-depth analysis of the budget on their website, www.cbpp.org.
From the National Health Law Program:
Starting next Tuesday, the Senate will begin debating the FY 2005 "budget resolution." The budget resolution sets the Congressional spending limits for each appropriations committee. The resolution being drafted by Senator Nickles (Republican chair of the Budget Committee) calls for $11 billion in cuts to Medicaid. As you all know, these cuts would be devastating to the Medicaid program, already under stress from states' fiscal situations.
The budget resolution masks the actual amounts of the cuts, so you may hear that the total cuts to all entitlement programs will "only" amount to $3 billion. But when you look behind the numbers, the actual cuts are much higher. Here's how:
1. The budget resolution would require the Finance Committee to make $3.4 billion in cuts to entitlement programs (including Medicaid).
2. The resolution would also require the Committee to spend $18.2 billion to make the Child Tax Credit permanent; but the budget resolution does not include the money to pay for this.
3. If you add the $3 billion in entitlement cuts with the $18 billion the committee has to spend on the child tax credit, the total cuts to entitlement programs will be $21 billion.
Senator Nickles has stated that he expects the Committee would cut $11 billion from Medicaid over five years. (The other amounts would be a $3 billion cut in the Earned Income Tax Credit and $7.5 billion increases in customs user fees.) The budget resolution does not include any specific proposals on how to cut Medicaid so the cuts could come anywhere - FMAP rates, eligibility, services or elsewhere.
It gets even worse. Senator Nickles' draft budget resolution would not include any funds: to extend the temporary Medicaid "fiscal relief" (FMAP increase) which expires in June or the expiring SCHIP funds; to enact the Family Opportunity Act or TANF or TMA extensions; or to pay for the President's proposed New Freedom Initiative. Thus, if any of these proposals were to move forward, they would need to get a 60 vote majority or be paid for by other cuts to entitlement programs. (The budget resolution proposes new "PAYGO" [pay as you go] rules which would require any new spending in entitlement programs to be paid for by cuts in those same programs.)
Only 50 votes are needed to pass the appropriations bills. Therefore, if the budget resolution passes, it would be very difficult to defeat any Medicaid cuts included in an appropriation bill. So the Senate picture is bleak. And it may get worse in the House where we may see proposed cuts of up to $25 billion to Medicaid.
If you would like to do something, time is of the essence since the Senate will begin debating this on Tuesday March 9. What could you do?
Call your Senators and urge them to oppose any cuts to Medicaid. Don't fall for the line that the cuts are only $3 billion - explain that Senator Nickles himself stated expected cuts of $11 billion in Medicaid. ------------------------------------------------------------------------ THANK YOU FOR YOUR PARTICIPATION!!!!!!!! ----------------------------------------------------------------------- |
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