March 30, 2001
House Passes Budget Resolution
The House of Representatives March 28 passed its FY 2002 budget resolution (H. Con. Res. 83) by a vote of 225 to 205.
Two Republicans - Joel Hefley (Colo.) and Ron Paul (Texas) - voted against the budget, while three Democrats - Gary Condit (Calif.), Ralph Hall (Texas), and James Traficant (Ohio) - voted for the measure.
The budget calls for $1.6 trillion in tax cuts over 10 years, with $64 billion in reduced taxes in FY 2002.
For health, the budget assumes $41 billion for discretionary health (budget function 550), which is only $2.2 billion above last year's spending level. At the same time, the budget includes a $2.8 billion increase for NIH and a $124 million increase for community health centers, as proposed in the president's budget blueprint [see Washington Highlights, March 2].
For Medicare, the resolution assumes $153 billion over 10 years for Medicare reform, highlighting President Bush's principles for reform and includes Bush's Immediate Helping Hand Prescription Drug Plan. The bill directs the House Ways and Means and Commerce Committees to pass legislation to provide a prescription drug benefit and reform the Medicare program by July 2001. The budget is also consistent with the Feb. 13 House-passed provisions of the Social Security and Medicare Lock-Box Act of 2001 [see Washington Highlights, Feb. 16], which creates a procedural "lock-box" so that the Medicare Hospital Insurance [HI] surplus can be used only for debt reduction or Medicare reform. The resolution also provides access to additional funds, if needed, for Medicare reform with prescription drug coverage.
In terms of expanding health insurance coverage, the budget assumes the enactment of a new refundable tax credit for individuals and families who do not have access to employer-sponsored health insurance. The budget also assumes the enactment of (H.R. 600), the Family Opportunity Act of 2001, where States would have the option to expand Medicaid coverage for children with special needs.
The Senate Budget Committee is not expected to take up the resolution because its membership is evenly divided between Republicans and Democrats. Under the Senate rules, the resolution can be brought directly to the Senate floor after April 1 without committee approval. Republicans are expected to push the Senate to pass the budget before the April 7 start of the spring recess.
Information: Dave Moore (general budget, discretionary health) or Lynne Davis (Medicare), AAMC Office of Governmental Relations, 202-828-0525.
