Medicaid Cuts
Background
The Deficit Reduction Act of 2005 (S. 1932), which passed in the U.S. House of Representatives on February 1, 2006 and the U.S. Senate on December 21, 2005, contains $5.6 billion in gross Medicaid cuts over five years, and $22.6 billion over ten. The majority of these cuts will fall directly on vulnerable Medicaid beneficiaries who will be faced with dramatically higher out-of-pocket expenses. These expenses include $10 billion in new co-payments, premiums and deductibles over ten years. Disturbingly, the Congressional Budget Office plainly states that 80% of this $10 billion in savings will result from Medicaid beneficiaries forgoing needed care. The conference agreement also contains $6.1 billion in benefit reductions over ten years, and an additional $6.4 billion in reduced payments for long term care.
ANA Position
ANA supports a Medicaid Program that provides coverage based on federal standards that ensures access for poor and special needs populations. ANA maintains that any savings realized from the restructuring of Medicaid must be reinvested in the expansion of coverage and benefits.
Medicaid provides essential health care coverage for an estimated 51 million Americans. Medicaid covers the elderly, blind and persons with disabilities, pregnant women, children, and the parents of many covered children. Medicaid now covers more than 25 million children including one out of every three births and one out of every four children - and finances care for 70 percent of nursing home residents.
Due to the rising number of uninsured and increases in the cost of prescription drugs and other health care expenses, Medicaid rolls have increased dramatically in the last five years. However, the increasing number of people covered by Medicaid has helped to keep the total number of uninsured Americans relatively stable.
Additional Information