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Senior Citizen Politics
Medicare, Medicaid May Save $70 Billion in New Bush
Budget Proposal
'He still acts as if Republicans were in complete
control and Democrats had lost the election,' Sen. Rangel (D-N.Y.)
 February 2, 2007 – President Bush is expected to
unveil his plan next week for balancing the budget and over $70 billion
of the savings are expected to come from Medicare and Medicaid, two
programs of critical importance to most senior citizens. Higher Medicare
premiums for higher income seniors and holding back on the fees paid to
home health agencies, hospitals, nursing homes and other health care
providers are expected to produce most of the savings, according to the
New York Times. Democrats are not welcoming these ideas, finds
KaiserNetwork.org.
 President
Bush in FY 2008 Budget Will Seek $70B in Savings From Medicare,
Medicaid, According to Administration Officials, Lobbyists
President Bush next week is expected to propose
more than $70 billion in savings from Medicare and Medicaid over five
years, according to administration officials and health care lobbyists,
the
New York Times
reports. The proposed cuts are part of Bush's plan to balance the budget
by 2012, beginning with his fiscal year 2008 budget scheduled for
release next week.
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Politics for Senior Citizens |
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Under Bush's proposal, a greater percentage of
Medicare beneficiaries with relatively high incomes would be required to
pay more than the standard monthly premium, which currently is $93.50.
Administration officials did not provide details about proposed Medicare
premium increases.
Bush also is "expected to propose freezing Medicare
payments to home health agencies and reducing inflation allowance paid
to hospitals, nursing homes and other providers," the Times reports.
The FY 2008 budget proposal assumes that an 8%
Medicare reimbursement cut for doctors scheduled to go into effect next
year will not be reversed.
Bush also is expected to propose changes to SCHIP
to "sharpen its focus on low-income families," possibly by reducing
federal payments to states that cover children whose families have
incomes that exceed 200% of the federal poverty level, the Times
reports. Administration officials said Bush will not propose lowering
reimbursements to private Medicare plans.
Analysis, Reaction
"Even some administration officials say they cannot imagine approval
of such large cutbacks in a Congress now controlled by Democrats,"
according to the Times.
Anticipated proposals from Sen. Hillary Rodham
Clinton (D-N.Y.) and other Democratic lawmakers to expand SCHIP likely
would clash with Bush's proposal.
House Ways and
Means Committee Chair Charles Rangel (D-N.Y.) said, "There is
a large area for potential compromise and agreement, but with these
latest Medicare proposals, the president is just asking for controversy.
He still acts as if Republicans were in complete control and Democrats
had lost the election."
House Ways and Means Committee ranking member Jim
McCrery (R-La.) said, "The current rate of growth in Medicare, fueled by
rising health costs and an aging population, is unsustainable. If
Congress does not undertake sensible reforms soon, the system will be
swamped as the baby boom generation begins to retire. Taxes will rise,
benefits will be cut and the entire economy will suffer."
American
Enterprise Institute economist Joseph Antos said, "The
president's budget is an opening bid, the start of negotiations with
Democrats over health care and other programs." Hospital lobbyists are
planning to fight Bush's proposal.
American Hospital
Association Executive Vice President Richard Pollack said,
"Two-thirds of hospitals already lose money treating Medicare
beneficiaries" (Pear, New York Times, 2/2).
Biodefense
In other budget news, a budget omnibus bill that would fund most
government agencies for the remainder of FY 2007 that won House
approval
this week does not include funding for the Biomedical Advanced Research
and Development Authority, a new program intended to coordinate vaccines
and countermeasures for biological threats (Berger,
CQ HealthBeat,
2/1).
BARDA, signed into law in December 2006 by Bush,
was created to distribute $1.07 billion over two years to biotechnology
companies for the development of vaccines and treatments (Kaiser
Daily Health Policy Report, 12/20/06).
CQ HealthBeat reports that the "absence of funding
for BARDA ... is surprising, considering passing BARDA legislation was
supposed to be a top priority for Democrats after their electoral
victories in November."
Laura Caudell, a spokesperson for Sen. Richard Burr
(R-N.C.), the bill's primary sponsor, said that Burr was "disappointed."
Caudell added, "He believes support for the development of drug and
vaccine countermeasures to protect the nation against future threats
should be a top priority for Congress." An
HHS
spokesperson was unavailable for comment.
The Senate could add funding for BARDA when it
considers the budget resolution next week, or funding could be added in
an emergency supplemental spending bill (CQ HealthBeat, 2/1).
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