March 11, 2005

Some GOP Senators Resist Proposed Medicaid Cuts

By: Sheryl Gay Stolberg and David D. Kirkpatrick


President Bush's request that Congress slow the growth of Medicaid, a centerpiece of the White House budget for 2006, is drawing opposition from some Senate Republicans, who are caught between their desire to support the president and pressure from home-state governors resisting the cuts.

One Republican, Senator Gordon Smith of Oregon, said he would call for a commission to examine the finances of Medicaid, the government insurance plan for the poor, in an attempt to generate bipartisan proposals about how to rein in the soaring cost of the program. Another, Senator Mike DeWine of Ohio, said he was worried about the impact Medicaid cuts would have on his state. A third, Senator Norm Coleman of Minnesota, said he was not ready to sign off on cuts.

''There is widespread concern about what is being asked in the nature of these cuts,'' Mr. Coleman said. ''I've got a good Republican governor in Minnesota who has deep concerns,'' he added, referring to Tim Pawlenty, a popular conservative considered a rising star in the party.

The senators, who do not belong to the group of Republican moderates who often criticize the administration's fiscal policy, made their remarks as the Senate Budget Committee passed a budget resolution for 2006 with a vote along party lines and no substantive amendments.

Senator Judd Gregg, Republican of New Hampshire, who is chairman of the committee, trimmed back the president's proposed spending cuts by about $30 billion over five years in an effort to shore up the support of others in the party, but the committee's budget includes $14 billion in reductions in projected Medicaid spending over the next five years.

It is part of an overall goal of reducing spending on so-called mandatory entitlement programs by $32 billion during that time. The House would go even further, proposing $68.6 billion over five years in cuts to entitlements, programs in which spending is determined by eligibility. President Bush's five-year budget proposes $51 billion in entitlement cuts.

Mr. Gregg called the cuts to the growth in Medicaid ''a marginal rate of restraint, almost a nonfactor'' that amounted to just 1 percent of the fund's expected $1.11 trillion size after five years. But he said, ''There are interest groups around here that wish to earn their keep so they have to hyperbolize issues.''

Medicaid is financed jointly by the federal government and the states. The budget committee estimates spending on mandatory programs, including Medicaid, will still grow to $2 trillion in 2010, from $1.5 trillion in 2005, under the Senate budget.

The reductions, which mark the first time since 1997 that lawmakers have tried to curb spending on entitlement programs, hint at the difficulties many Congressional Republicans face as they consider the budget resolution. While President Bush, who is vowing to cut the federal deficit in half over the next five years, is asking lawmakers to approve steep cuts in domestic programs, home-state politicians are complaining about reductions in everything from farm subsidies to urban renewal grants.

Yet some Senate Republicans think the budget reductions do not go far enough.

''I think the number could be a lot larger,'' said Senator John Ensign, Republican of Nevada, who is a member of the budget committee. He added, ''In the future we're going to have to go a lot farther because it's unsustainable the way it is.''

Others say while they are convinced that cutting entitlements is essential to reducing the federal deficit, they are reserving judgment about Medicaid.

''I am not sure this is the right one, but you are going to have to have some cuts to entitlements,'' said Senator Sam Brownback, Republican of Kansas. ''We do have a top line number that I think we need to get down. I think there will be reallocation efforts.''

He said he recommended creating a bipartisan commission to find a package of cuts across the government, a process similar to the way Congress seeks to take politically painful decisions on closing military bases out of its own hands.

Senator Olympia Snowe, Republican of Maine and a frequent dissenter within the party, said she favored Mr. Smith's proposal to create a commission to assess the finances of Medicaid, calling the program ''too important to the neediest populations.''

In a sign that some Republican members of the budget committee are sensitive to the plight of the states with respect to Medicaid, the panel agreed on Thursday to adopt nonbinding language offered by Senator Jon Corzine, Democrat of New Jersey, stating that the budget should not ''cap federal Medicaid spending, or otherwise shift Medicaid cost burdens to state or local governments.''

Mr. Gregg described the resolution as ''a benign amendment.'' But Mr. Corzine said he felt the committee had given him the ''moral backing'' to raise the issue of Medicaid spending cuts when the budget comes to the Senate floor.

The committee on Thursday beat back a series of other Democratic amendments, including one that would have stripped language intended to open the door to oil drilling in the Arctic National Wildlife Refuge in Alaska.

 

 

 

 



 

 

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