NEWS RELEASE
Committee on Energy and Commerce Democrats
Congressman John D. Dingell, Ranking Member

Dingell and Bingaman Offer State Medicaid Programs Protection from President Bush’s Budgetary Assault

Washington, D.C. – With states facing growing budget deficits and the President pushing a tax-cut that will ultimately shift more economic burden to them, Congressman John D. Dingell, Ranking Member of the Committee on Energy and Commerce, and Senator Jeff Bingaman, Ranking Member of the Energy and Natural Resources Committee, today introduced legislation that would provide immediate fiscal relief to help states improve Medicaid and provide coverage to their uninsured residents.

"States are facing growing budget deficits that are forcing them to make tough choices about programs like Medicaid that are vital to the health and well-being of many of their citizens," Dingell said. "This bill will offer immediate help to offset the President’s shameful tax-cut that increasingly shifts more burden on to the states."

"Our nation’s states and health safety net are simultaneously facing a crisis. The federal government cannot simply look the other way as the situation deteriorates. The legislation Rep. Dingell and I have introduced would give states a much-needed boost in federal Medicaid funding, which will ensure that the neediest among us will have their basic health care needs met," said Bingaman, a member of the Senate Finance Committee.

The purpose of the legislation, Strengthening Our States Act of 2003 (SOS), is to strengthen states in a time of economic crisis, and strengthen the program that more than 50 million Americans depend on. SOS would help states continue to reduce the number of uninsured, and fill the gaps in federal responsibility for health care -- particularly for the elderly and those with disabilities.

One of the largest costs to states comes from caring for low-income Medicare beneficiaries. The SOS Act would shift to the Federal Government the responsibility for the premiums, cost-sharing, and deductibles for Medicare beneficiaries with incomes under 135 percent of poverty, or $12,123 a year.

Assistance with premiums, which is supported by the National Governors Association, alone will provide a boost of approximately $50 billion over the next ten years for state budgets. Nationwide, this will help states cover the costs of nearly six million current Medicare beneficiaries. In Michigan, this means extra help for the 100,000 low-income elderly who receive assistance with their Medicare costs.

The SOS Act also assists states in keeping elderly and individuals with disabilities in their homes, rather than forcing them into institutions. Unlike the Bush Administration proposal that caps federal assistance and abdicates responsibility, the SOS bill would help ensure that a transition to home care or community care is a viable option for the elderly and people with disabilities. It gives immediate, permanent additional federal assistance for the more than 760,000 individuals receiving home- and community-based care nationwide. In Michigan, this legislation will give new health care opportunities for many of the 270,000 elderly and disabled individuals who are currently covered by Medicaid.

"We can and should act immediately to shore up Medicaid. The SOS Act is good first step and I encourage my Republican colleagues to bring it before the Committee for action before states are forced to put seniors and disabled people out on the streets."

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