US: states, federal government prepare massive Medicaid cuts
By Joseph Kay
11 May 2005
http://www.wsws.org/articles/2005/may2005/medi-m11.shtmlAs part of ongoing budget negotiations, states in the US are developing proposals for deep cuts in Medicaid, the health care program that serves over 50 million low-income Americans, including children, the disabled and the elderly. The attack on Medicaid is a major component of the systematic destruction of social programs in the United States.
The proposals include cuts in the number of people who will be eligible for benefits, as well as reductions in the services provided to those who are covered. Some states are planning to drive hundreds thousands of people off their Medicaid rolls and force even the poorest of recipients to pay premiums on essential services such as emergency room care.
The New York Times reported in a May 9 article (“States Propose Sweeping Changes to Trim Medicaid by Billions” by Robert Pear) that the National Governors Association and the National Conference of State Legislatures are developing proposals to cut state spending. The Times report was based on draft proposals that have not yet been publicly released.
These proposals are part of negotiations between the states and the US Congress, which last month approved a budget outline that foresees a federal savings of $10 billion by reining in spending on Medicaid between 2006 and 2010. The Bush administration has proposed a far higher cost reduction...