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Battle Not Over on Bill to Cut Medicare, Medicaid as Advocates Attack

Democratic leader will demand record vote with support from AARP, Catholic Charities

Dec. 22, 2005 – The battle over the Budget Reconciliation Act is not over. The Senate passed a modified version of the House bill with a tie-breaking vote by Vice President Cheney. Due to the differences in the Senate bill, however, it must go back to the House for a vote, where House Speaker Dennis Hastert has asked Democrat leader Nancy Pelosi to agree to quick passage by "unanimous consent." Pelosi says she does not agree and wants a record vote. Meanwhile, advocacy groups like AARP and Catholic Charities want the House to restore cuts to Medicare and Medicaid.

 

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In a letter delivered to Pelosi yesterday, Hastert said unanimous consent would "avoid unnecessary disruption in the enactment of important program additions and reforms contained in this legislation."

He citied the consequences of not passing the bill now as –

● Hurricane Katrina victims would not receive $2 billion in medical aid;
● dialysis providers who accept Medicare patients will see their payment rates frozen;
● Medicare beneficiaries will not be able to get access to new disease management and nutrition therapy;
● doctors will see Medicare reimbursements cut by 4.4 percent;
● transitional medical assistance for families who have worked their way off welfare would be eliminated;
● states will not get an additional $1 billion for child care assistance;
● the Milk Income Loss Contract Program (MILC) program would not be extended and dairy farmers would lose $50 million just for December 2005; and,
● state high risk insurance pools under Medicaid will go unfunded.

Pelosi called the bill an "immoral budget spending bill" and added, "Just four days before Christmas, this Republican Congress wanted to go home for the holidays, leaving a lump of coal in the stockings of American families. That is contrary to the spirit of this holiday season and contrary to the values of this nation.

"As it stands now, it hurts the neediest in our country, while providing huge giveaways to managed care and drug companies and the oil industries.

"Democrats believe this Republican bill has the wrong priorities. That is why we will request a recorded vote where all members return to Washington to make clear their values to the America people. Democrats will work with our allies to fight for a budget that represents the values and needs of all Americans."

A major ally is AARP, which delivered a letter from CEO William D. Novelli to each member of the House saying, "AARP strongly urges you to oppose the measure."

"The current reconciliation agreement puts the interests of the pharmaceutical and managed care industries over the well-being of Medicare and Medicaid beneficiaries, wrote Novelli.

He cited the following problems in the current Senate bill:

Makes it harder for vulnerable Americans needing long-term care to qualify for Medicaid and punishing older persons who have simply helped their families;

Forces some Americans to forfeit their homes in order to get long-term care services;

Requires all Medicare Part B beneficiaries to pay higher premiums and reopening the MMA, not to make improvements in the new drug benefit, but to require those with more income to pay higher Part B premiums sooner; and

Forces low-income Medicaid recipients to pay more for their care -– and if they cannot afford to do so –- to potentially be denied care entirely.

He said, "The final package chose to include provisions that hurt those who need help the most, while shielding the pharmaceutical and managed care industries."

The Democrat and AARP gained another strong ally today – Catholic Charities USA.

"Congress has turned its back on our nation's poor and vulnerable by slashing programs vital to the health and well-being of our children, fragile families, the elderly, and disabled adults," said Rev. Larry Snyder, president of Catholic Charities USA.

"This measure, with its harsh budget and program changes, is certain to have long-term, harmful effects on countless families across our nation."

He called the cuts "drastic" to programs such as Medicaid, child support enforcement, child welfare, and the Temporary Assistance for Needy Families (TANF) program.

"Our Catholic tradition teaches us that society, acting through government, has a special obligation to consider first the needs of the poor, yet these budget cuts put a disproportionate burden on the poor - those that can least afford it," said Fr. Snyder. "Sadly, Congress has not met its obligation."

"These drastic cuts come at a time when increasing numbers of working families, seniors, and disabled adults are seeking assistance from local Catholic Charities," he said.

"A recent survey conducted by Catholic Charities USA of more than 70 local Catholic Charities found that the nation's most vulnerable populations - the working poor, homeless and seniors - increasingly need financial assistance to pay for basic commodities such as food, housing and utilities.

"Major survey findings on the growing need for help include: 81 percent of agencies report an increase in the need from the working poor; 64 percent cite an increase in the number of families seeking help; 52 percent are seeing more seniors in need; and 49 percent are seeing more homeless seeking help.

"Trapped at the bottom of the labor market, thousands of families are unable to meet their basic needs. Consequently, they turn to our agencies to fill in where their budgets fall short - one month it may be food, the next they may seek prescription co-pay assistance, and still another month they may turn to an agency for shelter."

"This budget will only make their situation more dire," said Fr. Larry.

According to the CCUSA survey, areas of service with significant increases in 2005 in the number of requests for help include:

-- 82 percent of Catholic Charities agencies have experienced an increase in requests for financial assistance;

-- 69 percent of agencies found an increase in requests for aid in making rent or mortgage payments;

-- 59 percent of agencies reported an increase in the need for food;

-- 48 percent cited an increase in the need for temporary housing; and

-- 39 percent reported an increase in the need for prescription assistance.

Because of changes made by the Senate, the bill now goes back to the House for consideration when it returns after the holiday recess.

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