Letter to President Bush Opposing the Inclusion of Provisions to Cut, Cap, or End the Medicaid Entitlement in the Fiscal Year 2006 Budget Proposal

January 12, 2005

Dear President Bush,

As you finalize your budget proposal for fiscal year 2006, the undersigned organizations representing national organizations and state and local organizations from all 50 states and the District of Columbia urge you not to cut Medicaid or make changes that would alter the fundamental structure of the program. Over 53 million Americans rely on Medicaid for their health care including long-term services. Any cuts in this critical program will impair the benefits these vulnerable Americans receive, diminishing the program's ability to meet the growing need for health coverage for low-income children, parents, seniors, pregnant women, and people with disabilities. In addition, cutting Medicaid would hurt health care providers and the broader health care system.

Medicaid cuts or funding caps also would shift billions of dollars in health care costs to state and local governments. As states deal with the rising cost of health care and the aging population, it is clear that reducing or capping federal funding would move policy in precisely the wrong direction. States need reliable and consistent federal Medicaid funding to sustain their Medicaid programs.

We are strongly opposed to changes in the current structure of the Medicaid program that include converting the program into a block grant or otherwise imposing caps on federal funding. It is essential to preserve the individual entitlement provided under Medicaid. This program has proven highly successful in responding in difficult economic times because of the program’s guarantee of coverage to people who are eligible as well as its open-ended financing structure. In the most recent recession, millions of Americans who otherwise would have been without health insurance had coverage thanks to Medicaid.

We recognize the need to address rising health care costs that face our nation. It is important to note, however, that Medicaid’s overall growth rate is lower than that of private health insurance premiums. Cutting or capping the Medicaid program, rather than addressing underlying health care costs and the growing demand for long-term care, will have profound consequences not just for those who rely on Medicaid but for the overall health care system.

We ask that your FY2006 budget proposal protect both the funding and current structure of the Medicaid program so that it may continue to meet the vital health care needs of the most vulnerable Americans.

Sincerely,

Click here to see a list of signees.