Federal Cuts to Medicaid Benefits
by Lance Hegland
On December 21, 2005
the United States Senate passed an agreement with the United States
House of Representatives in relation to the Deficit Reduction Act
of 2005. The Act could have significant negative implications for
individuals with a disability. Senator Norm Coleman (R-MN) voted
to pass the agreement while Senator Mark Dayton (D-MN) voted to
oppose the agreement. However, the agreement succeeded by a very
slim margin: 50 Senators voting “yes,” 50 voting “no,” and
the Vice President casting the deciding “yes” vote.
The bill was opposed by the
Consortium for Citizens with Disabilities (CCD) as well as the National
Council on Independent Living (NCIL). Read the national CCD
letter. EDITOR'S
NOTE: the letter was sent by the national Consortium for Citizens
with Disabilities (CCD) to United States Senators prior to the
Senate vote on December 21.
Some of the features of the agreement would do the following:
• enable states to charge increased premiums, deductibles, and
co-payments for Medicaid/Medical Assistance recipients;
• allow medical providers to more easily deny non-emergency care
for Medicaid/Medical Assistance recipients unable to pay the deductibles
or co-payments;
• make it more difficult for individuals to qualify for Medicaid/Medical
Assistance by not allowing the transfer of their assets because of
tighter asset rules;
• alter the Early and Periodic Screening, Diagnostic, and Treatment
(EPSDT) program by making certain benefits optional for states, which
may jeopardize personal assistance services, therapy services, eyeglasses,
hearing aids, and mental health services for children with disabilities;
• increase reliance on managed care programs for Medicaid/Medical
Assistance recipients, which could hinder the ability to access needed
care in a timely fashion;
• permit greater use of provisions on enrollment caps and waiting
lists for home and community-based services; and,
• change the Temporary Assistance for Needy Families (TANF) program
to increase work requirements, reduce child care funding, and restrict
Federal foster care support for grandparents and other relatives.
Most agree that the
Deficit Reduction Act proposal contains several valuable items,
including the Family Opportunity Act and the Money Follows the
Person Rebalancing Demonstration. However, opponents assert that
the benefits of the widely-agreed upon portions do not outweigh
the cuts to programs depended upon by families and individuals
in need. Supporters of the budget agreement stress the immediate
need to slow government spending in order to control our nation’s
deficit. Nearly all opponents agree federal spending must be controlled
and they support reducing the deficit, but feel spending cuts should
not cause harm, or abandon, those in need. Furthermore, opponents
cite their belief that tax cuts benefiting wealthy families, individuals,
and corporations will be proposed this spring.
These rumored tax cuts
will significantly reduce the federal government’s
income. Some say the proposed budget cuts will save an estimated
$40 billion over the next five years, while the rumored tax cuts
are estimated to reduce federal income by $70 billion a year. If
true, the tax cuts would outweigh the savings from the budget cuts
by about $30 billion; meaning wealthy Americans will benefit because
of service and benefit reductions impacting low-income families,
individuals with disabilities, children, and elderly—giving
back to the rich by neglecting those in need and actually increasing
the deficit! Ultimately, the two actions would widen the gap between
the “haves” and “have-nots”—without
solving the deficit problem.
Besides the Deficit
Reduction Act, the Legislature also approved the annual budget
for certain programs administered by the Department of Labor, Department
of Health and Human Services, and Department of Education. Overall,
the approved budget reduces these departments’ annual
spending by $1.5 billion. Each department must cut a few of their
programs by 1%, excluding Veterans Affairs’ programs. The Substance
Abuse and Mental Health Services Administration will receive $30
million less than last year while the Social Services Block Grants
will not experience any cuts or increases. The Traumatic Brain Injury
Program, which is run by the Bureau of Maternal and Child Health,
will lose approximately $300,000 from last year.
These bills again highlight
the importance that each and every individual must be involved
in the full democratic process—not just during
election season—to ensure that our elected representatives
understand and appropriately act upon our individual needs and concerns.
For example, contact your representatives a few times during the
year to discuss your needs and concerns as well as to learn about
upcoming legislation that may affect you. Contact your representative
in the United States House of Representatives today! To find out
who is, and how to contact, your elected representatives, please
visit www.vote-smart.org/ or contact 1-888-VOTE-SMART (1-888-868-3762).
