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AFSCME's Position – Securing Medicaid

Background

Not withstanding the immense health care needs of the Hurricane Katrina evacuees, Congress is currently considering $10 billion in Medicaid cuts over the next five years. Negotiations are currently underway by the leaders of the Senate Finance and the House Energy and Commerce Committees on how to achieve those cuts from the programs that are within their jurisdiction.

Medicaid cuts of this magnitude will cause a rise in uncompensated care, causing cost-shifting throughout the health care system. This means that those who still have coverage will pay even more for health care. Many health care facilities, particularly those in our crucial health care safety-net system, are dependent upon Medicaid funds for their very existence. Cuts in Medicaid will force many to close their doors, causing job losses in the health care sector and hurting local economies.

Summary of legislation

Discussions are proceeding on ways to achieve the mandated level of cuts that will not only affect the Medicaid program, but will include cuts to the Temporary Assistance to Needy Families (TANF), Food Stamps and other programs that affect critical help for vulnerable people.

AFSCME position

AFSCME is opposed to any reductions to the Medicaid and Medicare programs. AFSCME urges:

• Medicaid is the largest health care program in the country, serving over 50 million people, including more than one in four children and 6.4 million "dual eligibles" enrolled in both Medicaid and Medicare. Cuts to the Medicaid program will negatively impact those people who depend on this important program and the providers who deliver health care to them.
• At a time when millions are displaced and seeking federal and state assistance, it is inappropriate to consider cuts of this magnitude to this program.

What you can do

Call your Senators and Representative and tell them that you strongly oppose any cuts to the Medicaid program.

Department of Legislation
September 2005

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