CBPP: Ways and Means Likely to Avoid Medicare Cuts as Part of Budget Reconciliation

The House Ways and Means Committee is likely to turn to programs that serve low-income Americans to meet its budget reconciliation targets, the Center on Budget and Policy Priorities predicted. In a conference call with reporters, analysts from the left-leaning think tank said Ways and Means members would likely look to trim as much as $8 billion in spending from programs such as the Earned Income Tax Credit, the Supplemental Security Income program, and the Temporary Assistance for Needy Families program. Read more »

Kaiser Survey Shows State Budget Problems of Providing Medicaid Is Decreasing

The fiscal crises many states experienced from providing Medicaid in past years has eased and many are expanding coverage for their residents, according to three surveys released by the Kaiser Family Foundation. But possible federal cuts to the joint federal–state health insurance program for the poor could impose more costs on the states and provide long-term challenges to providing coverage in the future, said the surveys' authors. After coping with a large gap between state revenues and Medicaid spending in 2002 and 2003, one survey showed that state revenues have increased as Medicaid spending and enrollment growth has slowed between 2004 and 2005. Read more »

Newly Approved Florida Demo Gives State New Powers to Alter Medicaid Benefits

Opening the door to what could be a nationwide trend, Health and Human Services approved a controversial Florida plan giving the state greater power to alter benefits and bring its yearly spending growth on Medicaid below the current rate of 13 percent. Critics of the Florida plan called it a threat to health care for some of the nation's most vulnerable citizens. But Florida officials say they must overhaul the $15 billion program or it will consume nearly 60 percent of the state's budget by 2015. It now takes up 25 percent of the state's budget. Read more »

Senate Finance Unveils Plan to Cut $10 Billion from Medicare, Medicaid

After weeks of negotiations, Senate Finance Committee Republicans agreed on a package of Medicare and Medicaid spending cuts that would save a net of $10 billion over five years, meeting their target under this year's budget resolution. Chairman Charles E. Grassley, R-Iowa, scheduled a formal markup of the package for 4 p.m. on Oct. 24. The proposal would carve a net $4.26 billion from Medicaid, the joint federal–state health insurance program for the poor, and a net $5.76 billion from Medicare, the federal health program for the elderly and disabled. Read more »

Survey Reports Americans Do Not Properly Plan for Retirement Health Benefits

Americans are vastly underestimating how much they will spend on health care when they retire, a survey has found. Nearly 30 percent of pre-retirees don't know what to anticipate for their health care needs and almost 40 percent have spent less than an hour in the last year planning for health benefits in retirement, the survey showed. The survey questioned more than 1,000 adults ages 45 to 75 who were grouped into retiree and pre-retirement age categories as well as by gender. Read more »