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Date: Tuesday, November 21, 1995
FOR IMMEDIATE RELEASE
Contact: HHS Press Office (202) 690-6343

Statement on CBPP's Report
on Republican Medicaid Proposal,
by Donna E. Shalala,
Secretary of Health and Human Services

The findings of the Center on Budget and Policy Priorities, which indicate that the Republican Medicaid proposal would severely underfund this vital safety net program, confirm my worst fears. The Center's study shows that the $163 billion cut in federal Medicaid funding being made by the Republicans in Congress is likely to be exacerbated by a cut by the states in their contribution to Medicaid, perhaps by as much as $257 billion over the next seven years. Combined, this is a cut of $420 billion. This is a staggering amount. When this all-too-realistic projection is factored in, the earlier estimate that nearly 8 million Americans would lose health coverage is clearly too conservative.

The Republican Medicaid plan places millions of women, children, senior citizens and individuals with disabilities in double jeopardy. As this analysis shows, states too will face an impossible task because of the huge shortfall in funding. This will place governors and state legislatures in a position in which they would almost certainly be forced to eliminate health care coverage for their most vulnerable citizens -- pregnant women, young children, senior citizens in nursing homes and those with disabilities. That is why President Clinton must and will veto this unfortunate piece of legislation.

For 30 years, both political parties have worked to protect the health of the American people. As Speaker Gingrich meets with Republican governors today, it is my hope that they will focus their discussions on improving this vital program and reemphasize its essential role in providing access to necessary health care for 36 million Americans.

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