Friday, May 27, 2011

Senate votes down House Budget Resolution


From medicarerights.org

Yesterday, the United States Senate rejected the House budget resolution that would turn Medicare into a voucher program, block grant Medicaid and repeal the Affordable Care Act(ACA). The House budget resolution, introduced by Congressman Paul Ryan, Chairman of the House Budget Committee, replaces Medicare, for those under 55, with a “voucher” system, also known as a “premium support,” that supplies individuals with a fixed amount of money to purchase insurance through private companies. However, the voucher amount would not be enough to purchase coverage as good as what is currently provided under Medicare. The Congressional Budget Office (CBO) estimates that this would double out of pocket costs for people with Medicare and that the voucher’s value would diminish over time because it would not keep pace with the rate of growth of healthcare costs overall, which is a major driving force of Medicare spending.  

While Medicare has garnered much of the attention in the debate, the vote last night also symbolized a major victory for Medicaid, which supplements Medicare for many older Americans and people with disabilities.   Currently, the federal government provides ongoing financial support to state Medicaid programs, setting minimum standards of eligibility and guaranteeing coverage for all those who are eligible. Under the House budget resolution, the government would only provide a capped amount to states (a block grant), and states would determine eligibility and coverage rules. The resolution would result in reductions in Medicaid coverage and more restrictive eligibility rules, meaning optional coverage categories and programs, many of which people with Medicare rely on, would be cut. The vote to defeat block grants in the Senate is one that aligns to public opinion, according to the Kaiser Family Foundation May tracking poll. Sixty percent of those polled supported keeping Medicaid as it now stands with only 35 percent stating that they support a block grant type of program. 
However, while yesterday’s Senate vote on the House budget resolution is important for Medicare and Medicaid, it represents only one in what will likely be a series of votes that may have adverse implications on the programs and the people the programs serve. Medicare and Medicaid still face significant cuts through other proposals that could surface in Congress again in the near and long term and result in Medicare vouchers or Medicaid block grants

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