Press room

Project Inform Urges House of Representatives
to Vote NO on Budget Reconciliation Bill

Non-Partisan Analysis Finds Budget Cuts
Place Burden on Sickest, Poorest, and Children

January 30, 2006

San Francisco, CA—Protect health care for the most vulnerable Americans by voting against the budget reconciliation bill on February 1st.

A non-partisan analysis by the Congressional Budget Office (CBO) finds that this bill will exacerbate the health care crisis in the United States. Its findings show that the number of uninsured Americans will increase significantly as people lose their Medicaid coverage and others are unable to enroll due to new and higher premiums.

The CBO also found that millions of Medicaid beneficiaries would lose access to essential health care services through reductions in benefits, increases in co-payments, and a new provision that would allow providers to deny care to those who are unable to afford premiums or co-payments. The cuts in eligibility and benefits will fund tax cuts for the most wealthy in America and other special-interest “earmarks”.

“Just four months after Hurricane Katrina highlighted the importance of public safety net programs for low-income people, this budget bill will take health care away from the most needy in America,” said Anne Donnelly, Director of Public Policy. “The House of Representatives must reject this mean-spirited effort to fund tax cuts on the backs of poor and working class families.”

Medicaid is the largest payer of care for people with HIV/AIDS. It serves 55% of people with AIDS and 90% of children with AIDS. The proposed budget bill contains many provisions that will be harmful to people living with HIV. For example, increases in cost-sharing could result in a co-payment of $120 for each Combivir prescription (currently no more than $3), only one component of an effective anti-HIV treatment regimen, and a $160 co-payment for each day in a hospital.

Furthermore, as people with HIV/AIDS drop from Medicaid coverage due to these “reforms”, there will be an increased burden on other public programs, such as the AIDS Drug Assistance Program. Some of these state programs are already failing to meet the basic needs of those they serve, and many are struggling with the case load they currently serve.

”Medicaid is a lifeline for people with HIV/AIDS,” said Ryan Clary, Senior Policy Advocate. “Congress must protect this vital safety-net program and ensure that the most vulnerable Americans can get the health care they need to remain healthy and productive.”