March 27,2003

Baucus Fights to Reverse Cuts to Medicaid Funding

Senator Sends Letter with the Support of 78 Colleagues to Protect Medicaid Funding


(WASHINGTON, D.C.) U.S. Senator Max Baucus today sent a letter to the SenateBudget Committee chairman and ranking member urging against any Medicaid fundingcuts in the final version of the budget resolution.

Currently, the House-passed budget resolution includes approximately $92 billionin Medicaid cuts, while the Senate-passed resolution and the Administration budget doesnot cut Medicaid funding.

“It is more important than ever to ensure that we can provide assistance to our mostvulnerable populations, especially given the slowing economy and tough fiscal situationour states are facing,” Baucus said. “I’m disturbed by the House budget that ignores thehealth care needs of millions of low income Americans and I’m going to keep up a steadydrumbeat to ensure that Medicaid funding levels are restored in the final budgetresolution.”

Baucus was joined by Finance Committee Chairman Charles Grassley and a groupof 77 bipartisan Senators in sending the Medicaid letter to Sens. Don Nickles (R-Okla.)and Kent Conrad (D-N.D.).

“As the states are forced to find ways to balance their budgets, too often funding isbeing taken from important social programs such as Medicaid. If further cuts are made atthe federal level as well, the results could be devastating. It’s up to us in Congress toprovide the states with the assistance they need and help take some of the burden off oftheir shoulders so they can properly fund this important program,” Baucus added.

WASHINGTON, DC 20510
March 27,2003
The Honorable Don Nickles
Chairman
Committee on the Budget
United States Senate
Washington, DC 20510

The Honorable Kent Conrad
Ranking Member
Committee on the Budget
United States Senate
Washington, DC 20510

Dear Senator Nickles and Senator Comad:

Medicaid provides essential health coverage to 47 million low-income children, workingfamilies, seniors, and people with disabilities. This critical safety net program also contributessignificantly to state economies by stimulating employment and business activity .

As you know, the House-passed budget resolution includes a reconciliation instruction requiringan estimated $92 billion in cuts to Medicaid funding over ten years. Neither the Senate budgetresolution nor the Administration budget includes any such cuts to Medicaid.

States are currently facing the most severe budget crisis since World War II and nearly everystate has proposed or enacted cuts to its Medicaid program. Any reduction in federal Medicaidfunding would place millions of vulnerable Americans now receiving Medicaid injeopardy oflosing their health coverage. Federal funding reductions would force states to implement evendeeper cuts by restricting eligibility , eliminating or reducing critical health benefits, and severelycutting or freezing provider reimbursement rates. As a result, Medicaid funding cuts would addmillions more to the ranks of the uninsured.

We, the undersigned Senators, write to express our strong opposition to the inclusion of anyMedicaid cuts in the final budget resolution. Cutting federal Medicaid funding would addmillions more to the growing ranks of 41 million uninsured Americans, even as Medicaid is mostneeded during an economic downturn.

The Senate has recently voted overwhelmingly to support state fiscal relief efforts ,to keep statesfrom having to cut eligibility or further reduce provider payments under their Medicaidprograms. The and scope of any relief efforts will be considered by the Senate FinanceCommittee and the Senate as a whole.

We are calling on you, as Chairman and Ranking Member of the Senate Budget Committee, toreject the inclusion of any Medicaid cuts as part of the final budget resolution.

Sincerely,

Max Baucus
Ranking Member

Charles E. Grassley
Chairman