Report Says Budget to Hurt Poor on Medicaid

Published on Monday, January 30, 2006 by the New York Times
by Robert Pear

WASHINGTON - Millions of low-income people would have to pay more for health care under a bill worked out by Congress, and some of them would forgo care or drop out of Medicaid because of the higher co-payments and premiums, the Congressional Budget Office says in a new report.

The Senate has already approved the measure, the first major effort to rein in federal benefit programs in eight years, and the House is expected to vote Wednesday, clearing the bill for President Bush.

In his State of the Union address on Tuesday, Mr. Bush plans to recommend a variety of steps to help people obtain health insurance and cope with rising health costs. But the bill, the Deficit Reduction Act, written by Congress over the last year with support from the White House, could reduce coverage and increase the number of uninsured, the budget office said.

Over all, the bill is estimated to save $38.8 billion in the next five years and $99.3 billion from 2006 to 2015, with cuts in student loans, crop subsidies and many other programs, the budget office said. Medicaid and Medicare account for half of the savings, 27 percent and 23 percent over 10 years.

The report gives Democrats new ammunition to attack the bill. But they appear unlikely to defeat it, since the House approved a nearly identical version of the legislation by a vote of 212 to 206 on Dec. 19.

Senator Charles E. Grassley, Republican of Iowa, said the bill was needed because Medicaid had been growing at an unsustainable rate.

But Senator Jeff Bingaman, Democrat of New Mexico, said the budget office report confirmed that the bill would "cut access to care for some of our most vulnerable citizens."

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