In Washington, Congress will be voting today on a budget compromise reached last weekend on the FY 11 budget. This agreement cuts $38.5 billion and includes an across-the-board 0.2% reduction in all non-defense discretionary accounts. Specific cuts include $600 million from community health centers and $35 million to eliminate the rural Delta Health Initiative.
While wrapping up FY 11, attention is shifting to work on the FY 12 budget and considering long-term deficit reduction plans. The House is debating a GOP budget resolution that would reduce domestic discretionary spending to below 2008 levels for 5 years, convert Medicaid into a block grant to the states, and shift Medicare into a voucher-like program in which future retirees purchase private insurance plans. In addition to his original FY 12 budget proposal, the President responded yesterday with recommendations, including streamlining Medicaid payments to states in a single rate for both Medicaid and Children’s Health Insurance Plans, strengthening a payment advisory board that would recommend cuts to reimbursement rates if Medicare costs grow too fast, and placing dual-eligible Medicare/Medicaid beneficiaries in Medicaid managed care and extending Medicaid drug rebates to this population.
