Statements from National Organizations on the House Budget Resolution Medicaid Proposal
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Statements from National Organizations on the House Budget Resolution Medicaid Proposal

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Cutting Medicaid by $1.4 trillion and instituting a rigid federal contribution that fails to account for changing needs, or the rapidly growing senior population, will put enormous pressure on states to reduce eligibility, cut benefits, and increase out-of-pocket costs. Medicaid recipients needing the most expensive care – seniors and people with disabilities – will be at greatest risk of being targeted for harmful cost-containment strategies. According to CBO, the proposal would cut Medicaid by 35 percent in 2022 and 49 percent in 2030.
-- National Council on Aging

The AHA is extremely concerned about further reductions to Medicaid, a program vital to the health of children, the disabled and the elderly. Across the country, Medicaid has already been dramatically cut as states struggle to balance their budgets. Further cuts of $771 billion over the next ten years would threaten this program, which is a lifeline to so many Americans.
-- American Hospital Association

Over the next five years (during which time CBO projects that the economy will still be below potential), Chairman Ryan’s Medicaid proposal would cut the program by $207 billion, which includes both eliminating the Medicaid expansion under the Affordable Care Act and even deeper cuts to the Medicaid program. Using a standard macroeconomic model that is consistent with private and public-sector forecasters, we find that a $207 billion cut would result in a loss of 2.1 million jobs over the next five years. The job loss would overwhelmingly be in the private economy. 
-- Economic Policy Institute

Public health insurance programs such as Medicaid are the foundation of our nation's safety net and provide necessary health care services to working families, children, the elderly and the disabled. We simply cannot support efforts to slash funding for them, which will hamper the provision of health care to people of all age groups and diverse economic situations and drastically reduce their ability to be healthy and active participants in our society.
-- Catholic Health Association of the United States

Medicaid costs significantly less per beneficiary than private-sector care, and its costs per beneficiary have been rising more slowly than private-sector health costs. Most states already make heavy use of managed care in their Medicaid programs and already enjoy considerable flexibility under federal law. The notion that policymakers can cut $771 billion from the program without sharply reducing both the number of low-income Americans who are insured and the coverage that Medicaid beneficiaries receive is at odds with reality.
-- Center on Budget and Policy Priorities

The Medicaid spending reduction envisioned in the proposed house Budget Resolution raises serious concerns because it would result in the loss of health coverage for millions of low income Americans, reduce critical benefits for others, and make it more difficult for hospitals, clinicians, and other health care providers to deliver the care so many need.
-- Federation of American Hospitals

The Chairman’s overhaul proposal to turn Medicaid into block grants could deny vulnerable seniors and the disabled access to long-term care and force deep cuts in quality and safety in nursing homes, leaving more seniors at risk of elder abuse and neglect.  Instead of imperiling seniors’ access to vital services, Congress should work with the states to find smarter ways to save Medicaid money, such as allowing more seniors to receive needed services in their homes and communities.
-- AARP

Allowing state governments to implement Medicaid block grants and eliminate requirements for specific types of care or eligibility could jeopardize the care of many frail seniors and individuals with disabilities. These proposals fail to think of the long-term costs. Cutting Medicaid services, including long term care, translates into higher hospitalization rates and other costs on the health care system. Meanwhile, providing states with a fixed dollar without accounting for the growing number of seniors that will require long term care services will prove to be non-sustainable and fail to solve our budget crisis.
-- American Health Care Association and National Center for Assisted Living

We are very concerned that the drastic Medicaid cuts and restructuring proposals with the House budget for FY 2012 would cause a public health crisis on a national scale.  Such deep cuts would undermine the integrity of the Medicaid program and would likely result in an increased number of Americans unable to access the care they need.  Medicaid is a lifeline for millions of Americans with disabilities. 
-- Consortium of Citizens with Disabilities

Though it is not often recognized, Medicaid plays an essential role in providing care and financial stability to older Americans and their families. Older adults and people with disabilities account for two-thirds of all Medicaid spending, and Medicaid pays for about 62 percent of long-term services and supports in the nation. Under this budget proposal, individuals would have to pay more and receive less coverage and fewer services.
-- Leadership Council of Aging Organizations

Without a doubt, the Ryan budget would be devastating for the millions of children across the nation who rely on Medicaid to have their basic health needs met. Block grants actually limit state flexibility by taking away a state’s ability to meet the needs of their citizens during times of crisis – including events like 9/11, Hurricane Katrina, and the recent economic recession. Under the Ryan plan states would have to bear 100 percent of the added cost. Block granting Medicaid would not only jeopardize coverage for millions of children, it would also result in cost-shifting that would place an even greater burden on states, localities, providers, and families.
-- First Focus


April 2011

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