Wednesday, February 01, 2006
Budget Cuts Target The Not-Rich
You got to admit, the Bush-Cheney Administration really does not give a damn for the poor. Time after time, the government will whack the poor and stroke the rich. Give those suits credit for consistency, if nothing else.
January 30, 2006
Budget to Hurt Poor People on Medicaid, Report Says
By ROBERT PEAR
WASHINGTON, Jan. 29 — Millions of low-income people would have to pay
more for health care under a bill worked out by Congress, and some of
them would forgo care or drop out of Medicaid because of the higher
co-payments and premiums, the Congressional Budget Office says in a
new report.
The Senate has already approved the measure, the first major effort
to rein in federal benefit programs in eight years, and the House is
expected to vote Wednesday, clearing the bill for President Bush.
In his State of the Union address on Tuesday, Mr. Bush plans to
recommend a variety of steps to help people obtain health insurance
and cope with rising health costs. But the bill, the Deficit
Reduction Act, written by Congress over the last year with support
from the White House, could reduce coverage and increase the number
of uninsured, the budget office said.
Over all, the bill is estimated to save $38.8 billion in the next
five years and $99.3 billion from 2006 to 2015, with cuts in student
loans, crop subsidies and many other programs, the budget office
said. Medicaid and Medicare account for half of the savings, 27
percent and 23 percent over 10 years.
The report gives Democrats new ammunition to attack the bill. But
they appear unlikely to defeat it, since the House approved a nearly
identical version of the legislation by a vote of 212 to 206 on Dec. 19.
Senator Charles E. Grassley, Republican of Iowa, said the bill was
needed because Medicaid had been growing at an unsustainable rate.
But Senator Jeff Bingaman, Democrat of New Mexico, said the budget
office report confirmed that the bill would "cut access to care for
some of our most vulnerable citizens."
The bill gives states sweeping new authority to charge premiums and
co-payments under Medicaid.
"In response to the new premiums, some beneficiaries would not apply
for Medicaid, would leave the program or would become ineligible due
to nonpayment," the Congressional Budget Office said in its report,
completed Friday night. "C.B.O. estimates that about 45,000 enrollees
would lose coverage in fiscal year 2010 and that 65,000 would lose
coverage in fiscal year 2015 because of the imposition of premiums.
About 60 percent of those losing coverage would be children."
The budget office predicted that 13 million low-income people, about
a fifth of Medicaid recipients, would face new or higher co-payments
for medical services like doctor's visits and hospital care.
It said that by 2010 about 13 million low-income people would have to
pay more for prescription drugs, and that this number would rise to
20 million by 2015.
"About one-third of those affected would be children, and almost half
would be individuals with income below the poverty level," the report
said in addressing co-payments for prescription drugs.
Under the bill, states could end Medicaid coverage for people who
failed to pay premiums for 60 days or more. Doctors and hospitals
could deny services to Medicaid beneficiaries who did not make the
required co-payments.
The budget office said the new co-payments would save money by
reducing the use of medical services.
"About 80 percent of the savings from higher cost-sharing would be
due to decreased use of services," the report said.
The official estimates take into account the fact that "savings from
the reduced use of certain services could be partly offset by higher
spending in other areas, such as emergency room visits."
After talking to federal and state officials and reviewing Medicaid
data, analysts at the Congressional Budget Office predicted that
states would charge premiums to 1.3 million low-income people and cut
benefits for 1.6 million people. Most of the cuts would affect
dental, vision and mental health services, it said.
The bill also makes it more difficult for people to qualify for
Medicaid coverage of nursing home care by transferring assets to
children or other relatives for less than fair market value.
This provision would delay Medicaid eligibility for 120,000 people,
or about 15 percent of the new recipients of Medicaid nursing home
benefits each year, the budget office said.
Under another provision of the bill, Medicaid would deny coverage of
nursing home care to any person with home equity exceeding $500,000.
States could increase the ceiling to $750,000. About 2,000 people a
year would be denied nursing home benefits because of the cap on home
equity, the budget office said.
Taken together, these provisions, requiring people to use more of
their own assets to pay for nursing home care, are expected to save
the federal government $6.4 billion over 10 years.
The budget office estimated that 35,000 Medicaid recipients would
lose coverage because of new, more stringent requirements for them to
prove United States citizenship. Most of those losing coverage would
be illegal immigrants, but some would be citizens unable to supply
the necessary documents, the report said.
Other provisions of the bill would establish stricter work
requirements for welfare recipients and cut federal payments to the
states for enforcing child support orders. The cut would save the
federal government $4.1 billion over 10 years, but child support
collections would decline as a result, the budget office said.
January 30, 2006
Budget to Hurt Poor People on Medicaid, Report Says
By ROBERT PEAR
WASHINGTON, Jan. 29 — Millions of low-income people would have to pay
more for health care under a bill worked out by Congress, and some of
them would forgo care or drop out of Medicaid because of the higher
co-payments and premiums, the Congressional Budget Office says in a
new report.
The Senate has already approved the measure, the first major effort
to rein in federal benefit programs in eight years, and the House is
expected to vote Wednesday, clearing the bill for President Bush.
In his State of the Union address on Tuesday, Mr. Bush plans to
recommend a variety of steps to help people obtain health insurance
and cope with rising health costs. But the bill, the Deficit
Reduction Act, written by Congress over the last year with support
from the White House, could reduce coverage and increase the number
of uninsured, the budget office said.
Over all, the bill is estimated to save $38.8 billion in the next
five years and $99.3 billion from 2006 to 2015, with cuts in student
loans, crop subsidies and many other programs, the budget office
said. Medicaid and Medicare account for half of the savings, 27
percent and 23 percent over 10 years.
The report gives Democrats new ammunition to attack the bill. But
they appear unlikely to defeat it, since the House approved a nearly
identical version of the legislation by a vote of 212 to 206 on Dec. 19.
Senator Charles E. Grassley, Republican of Iowa, said the bill was
needed because Medicaid had been growing at an unsustainable rate.
But Senator Jeff Bingaman, Democrat of New Mexico, said the budget
office report confirmed that the bill would "cut access to care for
some of our most vulnerable citizens."
The bill gives states sweeping new authority to charge premiums and
co-payments under Medicaid.
"In response to the new premiums, some beneficiaries would not apply
for Medicaid, would leave the program or would become ineligible due
to nonpayment," the Congressional Budget Office said in its report,
completed Friday night. "C.B.O. estimates that about 45,000 enrollees
would lose coverage in fiscal year 2010 and that 65,000 would lose
coverage in fiscal year 2015 because of the imposition of premiums.
About 60 percent of those losing coverage would be children."
The budget office predicted that 13 million low-income people, about
a fifth of Medicaid recipients, would face new or higher co-payments
for medical services like doctor's visits and hospital care.
It said that by 2010 about 13 million low-income people would have to
pay more for prescription drugs, and that this number would rise to
20 million by 2015.
"About one-third of those affected would be children, and almost half
would be individuals with income below the poverty level," the report
said in addressing co-payments for prescription drugs.
Under the bill, states could end Medicaid coverage for people who
failed to pay premiums for 60 days or more. Doctors and hospitals
could deny services to Medicaid beneficiaries who did not make the
required co-payments.
The budget office said the new co-payments would save money by
reducing the use of medical services.
"About 80 percent of the savings from higher cost-sharing would be
due to decreased use of services," the report said.
The official estimates take into account the fact that "savings from
the reduced use of certain services could be partly offset by higher
spending in other areas, such as emergency room visits."
After talking to federal and state officials and reviewing Medicaid
data, analysts at the Congressional Budget Office predicted that
states would charge premiums to 1.3 million low-income people and cut
benefits for 1.6 million people. Most of the cuts would affect
dental, vision and mental health services, it said.
The bill also makes it more difficult for people to qualify for
Medicaid coverage of nursing home care by transferring assets to
children or other relatives for less than fair market value.
This provision would delay Medicaid eligibility for 120,000 people,
or about 15 percent of the new recipients of Medicaid nursing home
benefits each year, the budget office said.
Under another provision of the bill, Medicaid would deny coverage of
nursing home care to any person with home equity exceeding $500,000.
States could increase the ceiling to $750,000. About 2,000 people a
year would be denied nursing home benefits because of the cap on home
equity, the budget office said.
Taken together, these provisions, requiring people to use more of
their own assets to pay for nursing home care, are expected to save
the federal government $6.4 billion over 10 years.
The budget office estimated that 35,000 Medicaid recipients would
lose coverage because of new, more stringent requirements for them to
prove United States citizenship. Most of those losing coverage would
be illegal immigrants, but some would be citizens unable to supply
the necessary documents, the report said.
Other provisions of the bill would establish stricter work
requirements for welfare recipients and cut federal payments to the
states for enforcing child support orders. The cut would save the
federal government $4.1 billion over 10 years, but child support
collections would decline as a result, the budget office said.
