Katrina May Interfere with Proposed Cuts to Medicaid
Spending
Yet another consequence of Hurricane Katrina is the probable
loss of health insurance coverage by those residing in the affected states.
As a result, Medicaid requests are anticipated to increase causing Congress
to re-evaluate the Bush administration's push to cut Medicaid spending
by $10 billion over the next 5 years, according to a recent article in the
Palm Beach Post.
Senate Majority Leader Bill Frist, (R-TN), indicated the target
reduction (from 7.4% to 7.1%) was to be achieved through "reducing waste,
fraud, and abuse." He also added, "cutting back on care . . .
would be absolutely wrong."
Another issue is whether or not the federal government will
completely cover expenses incurred by states who have taken in people displaced
by the storm. The Bush administration indicated states would "not be
penalized" for receiving those who require Medicaid or health insurance
for children.
The executive director of the National Governors Association
(NGA), Ray Scheppach, said Congress should evaluate increasing federal Medicaid
spending allotted to Alabama, Louisiana, and Mississippi. Richard Carmona,
Surgeon General, stated the government may designate evacuees as "universal
citizens," making them possible candidates for Medicaid, food stamps,
and other programs wherever they choose to settle.
Source: Palm Beach Post, 9-13-05
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