February 9, 2005

Rejects President’s Call for Cuts, Says Program Should be Studied before Major Changes Considered

Washington, DC – Today, Senator Gordon Smith (R-OR) introduced legislation to create a bipartisan panel to conduct a comprehensive review to determine how to improve service delivery and quality in the most cost-effective way possible under Medicaid. Introduction of the Bipartisan Commission on Medicaid Act comes after the president’s budget proposed over $60 billion in cuts to the program over ten years. The bill currently has eleven co-sponsors.

“We are still working our way out of a sluggish economy that raised the number of uninsured Americans to 45 million,” Smith said. “I understand finances are tight this year, but the first step we take to balance the budget shouldn’t be to take health care away from the people who need it the most.”

The Medicaid Commission will be charged with a number of duties, including reviewing and making recommendations with respect to the long-term goals, populations served, financial sustainability, interaction with Medicare and safety-net providers, and the quality of care provided. The Commission will have one year to hold public hearings, conduct its evaluations and deliberations, and issue its report and recommendations to the president, the Congress, and the public.

“The president’s budget includes only $1.1 billion in Medicaid savings next year,” Smith said. “Clearly, we’re not going to erase the deficit with that amount. Delaying action by one year, so that a full study can be done, will ensure that any changes improve Medicaid’s sustainability while maintaining access to care.”

Smith’s legislation is supported by a diverse group of advocates who likewise oppose cuts in the Medicaid program including: the National Conference of State Legislatures, National Association of Community Health Centers, American Hospital Association, National Association of Children’s Hospitals, National Association of Counties, National Alliance for the Mentally Ill, and the AIDS Institute.

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