WEEKLY SENATE UPDATE

By U.S. Senator Olympia J. Snowe

For the week of October 21 through October 28, 2005

BUDGET STRATEGIES THAT PROTECT THE MOST VULNERABLE

 

Recently, Senate Committees moved forward with budget savings packages, and I have heard some concern from my constituents about potential benefit cuts to necessary programs such as Medicare and Medicaid. The Finance Committee, of which I am a member, oversees these two programs, and I am proud to say that we have found a way to achieve savings by reducing wasteful spending, not reducing benefits to persons enrolled in either program. This package even contains new spending that benefits Maine, including children’s health services, community health centers, and Maine’s two private psychiatric hospitals. Ultimately, this package ensures that the most poor and disadvantaged among us do not bear the brunt of needed savings.

This year’s budget called for the Senate Finance Committee to identify $10 billion in savings in programs it oversees, such as Medicare and Medicaid. I worked tirelessly with the Chair of the Committee, Senator Chuck Grassley (R-IA) in order to ensure that Medicaid and Medicare savings do not impact beneficiaries, and during negotiations I repeatedly insisted that I would not support any plan that saves money by targeting those in need. 

I understand full well how essential Medicaid is to some of our most vulnerable populations. It is a vital health care safety net, providing indispensable services to those who could not otherwise obtain health care as well as providing coverage critical to the uninsured. Medicaid provides health and long term care services to 53 million low-income pregnant women, children, individuals with disabilities and seniors – 300,000 of them in Maine.  It provides coverage to the uninsured, which now number more than 45 million Americans, as well as 35 million seniors and 6 million Americans with disabilities. Keeping that in mind, I fought to ensure that these benefits would not be affected.  

The package ultimately adopted by the Finance Committee meets the goal of finding $10 billion total in savings over five years by taking $4.3 billion in savings from Medicaid and $5.8 billion in savings from Medicare. Once again, I must stress that this package does not affect the benefits of either Medicare or Medicaid beneficiaries. 

The Finance Committee’s package includes increases in spending to programs critical to Maine, including covering shortfalls in the State Children’s Health Insurance Program (“SCHIP”), $170 million additional support for rural hospital outpatient programs, and a 1 percent increase in Medicare reimbursements to doctors, nurses, and other medical professionals, which is key to maintaining access to full medical care in rural areas.  

The bill also included two amendments that I personally authored.  The first provides $30 million in Medicaid reimbursements to hospitals treating adult psychiatric patients, which will directly benefit Spring Harbor Hospital in Portland (affiliated with Maine Medical Center) and Acadia Hospital in Bangor, the two private psychiatric hospitals in Maine.  The second amendment provides $40 million in Medicare reimbursements to community health centers for preventive treatments that they render.  There are more than 30 community health centers across Maine.

I am particularly pleased that this package addresses my concerns that home health care not be impacted. We have also helped preserve access to primary and preventative care services for Medicare beneficiaries through improved payments to community health centers. I have long stressed that it is vital to ensure that we do not undermine our essential health care programs in the name of savings.

In my view, the package passed by the Senate Finance Committee strikes the proper balance not only in numbers, but most importantly in policy – I firmly believe that we must not create savings by limiting benefits that aid the least advantaged Americans. The savings in this agreement are derived not from reducing benefits, but rather from making needed reforms and eliminating unneeded spending, while at the same time including spending that strengthens Medicare and Medicaid.  Once again, we have pursued common sense budget strategies that protect the vulnerable.