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Washington D.C. – Today, a coalition of the nation’s leading children’s health organizations are expressing deep concern about the proposal to drastically reduce funding for the Medicaid program as outlined in the FY 2012 Budget Resolution released earlier this week. The group urged the House Budget Committee to protect children from harm in the Budget Resolution.
The FY 2012 budget, drafted under the direction of Budget Committee Chairman Paul Ryan (R-WI), proposes to end the Medicaid entitlement, instead providing fixed-dollar-amount funding to states through a new federal block grant system. Block grants would essentially cap the amount of federal money provided to states for Medicaid, resulting in significant underfunding of the program in the coming years. With savings estimated at $771 billion over ten years, it is a near certainty that funding for states would be far lower than under the current financing system, jeopardizing coverage and protections currently guaranteed for children and other vulnerable populations. This is combined with an estimated loss of $582 billion in state matching funds for an overall reduction of $1.35 trillion to Medicaid. Such a proposal would have a devastating effect on the health and well-being of the approximately 30 million children who rely on Medicaid to have their basic health needs met.
In addition, the Ryan budget effectively repeals funding beyond 2013 for the Children’s Health Insurance Program (CHIP), threatening coverage for another 7 million low-income children.
Bruce Lesley, president of the bipartisan child advocacy organization, First Focus, issued the following statement:
“Without a doubt, the Ryan budget would be devastating for the millions of children across the nation who rely on Medicaid to have their basic health needs met. By every measure, Medicaid is a cost-effective and essential lifeline for children, who constitute about 50 percent of the beneficiaries, but only 20 percent of the costs.
“Under the block grant system, states would receive fewer federal funds and be forced to contribute more of their own resources in order to avoid limiting coverage for children. Given the current budget challenges, this would be impossible for most states. Furthermore, block grants actually limit state flexibility by taking away a state’s ability to meet the needs of their citizens during times of crisis – including events like 9/11, Hurricane Katrina, and the recent economic recession. Under the Ryan plan states would have to bear 100 percent of the added cost. Block grants may look good on a budget ledger but the savings they bring in come from reducing coverage for those who are vulnerable.
“While we recognize that the current budget climate requires congressional attention, it is important to understand that cutting care to children could actually have the effect of increasing costs, both in health and in other sectors. Block granting Medicaid would not only jeopardize coverage for millions of children, it would also result in cost-shifting that would place an even greater burden on states, localities, providers, and families.
“Furthermore, the Ryan budget seems to contemplate the end of the CHIP, a program which provides health coverage to more than 7 million children and has the support of 82% of the American public. Chairman Ryan’s budget would fundamentally threaten the health of millions of American children. We urge Congress to declare the Ryan proposal dead on arrival.
In the letter addressed to Chairman Ryan and Ranking Member Van Hollen, the coalition of leading national children’s health organizations state, “From vaccinations, well-child check-ups, and chronic disease management, to oral health, vision care, and prenatal care for expectant mothers, Medicaid and CHIP ensure that children get the services they need to grow, develop, and go to school ready to learn.” Signatories to the letter include the First Focus, Children’s Defense Fund, March of Dimes, American Academy of Pediatrics, Family Voices, the National Assembly on School-Based Health Care, the National Association of Children’s Hospitals, and Voices for America’s Children.
Lesley added, “Providing our children with the health care they need to grow up healthy is not just the right thing to do, it is critical if our nation is to have a workforce that is healthy and prepared to meet the challenges of the future. We urge our nation’s leaders on both sides of the aisle to protect children from harm as they work to find solutions to our budget problems.”