House Budget Resolution Includes
Mandatory Program Cuts
March 19, 2004 - The House Budget Committee's version
of the FY 2005 budget resolution includes reconciliation instructions
for a number of committees to "eliminate waste, fraud,
and abuse." Specifically, the Energy and Commerce Committee
is instructed to save $410 million in mandatory programs within
their jurisdiction in FY 2005, and $2.2 billion over five
years. While the resolution does not instruct specifically
the committee to cut Medicaid, the AAMC is concerned that
a bulk of the savings could result in cuts to the Medicaid
program. The House Ways and Means Committee "shall report
changes in laws within its jurisdiction sufficient to reduce
the deficit" by $1.1 million in FY 2005 and $8.3 billion
over five years.
Similar to the Senate's budget resolution, the House resolution
includes a deficit neutral reserve fund for the uninsured
[see Washington Highlights,
March 5]. In addition, the resolution also includes
a deficit neutral reserved fund for the "Family Opportunity
Act," legislation that provides Medicaid coverage for
children with special needs.
A number of Democratic amendments were defeated, including
an amendment by Rep. Lois Capps (D-Calif.) that would have
removed the reconciliation instructions to the Energy and
Commerce Committee. The amendment was defeated 19-22.
The AAMC joined 17 other provider groups in signing a letter
to the House on March 11 opposing any cuts to Medicaid.
In addition, Rep. Peter King (R-N.Y.) and 27 other Republicans
signed a March 9 letter (PDF,
1 page - 388KB) to House budget Committee Chairman Jim
Nussle (R-Iowa) in opposition to the inclusion of Medicaid
cuts in the House Budget resolution. Reps. Sherwood Boehlert
(N.Y.), Richard Burr (N.C.), Randy "Duke" Cunningham
(Calif.), John Duncan (Tenn.), Phil English (Pa.), Jim Gerlach
(Pa.), Robin Hayes (N.C.), Amo Houghton (N.Y.), William Jenkins
(Tenn.), Timothy Johnson (Ill.), Sue Kelly (N.Y.), Jim Leach
(Iowa), Frank LoBiondo (N.J.), Donald Manzullo (Ill.), John
McHugh (N.Y.), Timothy Murphy (Pa.), Shelley Moore Capito
(W.Va.), Devin Nunes (Calif.), Jack Quinn (N.Y.), Ed Royce
(Calif.), Rob Simmons (Conn.), John Sweeney (N.Y.), Steve
Pearce (N.M.), Jon Porter (Nev.), Jim Ramstad (Minn.), George
Radanovich (Calif.), and Jim Saxton (N.J.) also signed the
letter.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526
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