For the time being, Medicare and Medicaid spending won’t be cut. Although President George Bush proposed a $65 billion reduction in Medicaid, Medicare, and other mandatory programs, the Senate voted to exclude the provisions. Last week, the House Budget Committee also voted to exclude the cuts.
As expected, both political parties are divided on the president’s budget. From Medical News Today:
The House resolution’s entitlement savings are “well shy of what conservatives had sought, but they remained heartened that reconciliation instructions were included at all,” CQ Today reports (CQ Today, 3/29). “Some moderates are encouraged that the budget plan does not target entitlements, particularly Medicare,” CongressDaily reports. Rep. John McHugh (R-N.Y.) said some of the larger spending reductions that had been under consideration “would have dealt a hefty blow to our hospitals and other caregivers,” adding, “On the surface, it appears that we can claim victory” (Cohn, CongressDaily, 3/30). However, other moderate Republicans “attack[ed]” the resolution’s spending levels for domestic programs, CQ Today reports. Rep. Michael Castle (R-Del.), who has called for $7 billion to restore a nominal increase in discretionary spending for health and education programs, said the House resolution was a “nonstarter.”