Senate Committee Approves Budget without Medicare, Medicaid Cuts

WASHINGTON–The Senate Budget Committee approved a version of
President Bush’s FY 2007 budget Thursday without Medicare and
Medicaid cuts.

The administration’s budget proposal calls for a number of
Medicare reductions–including a 13-month cap on Medicare oxygen
equipment rentals (see HomeCare
Monday, Feb. 13)–estimated to save the health care program
$2.5 billion in 2007 and $35.9 billion over five years.

But in the Senate committee’s version, Medicare would receive
$382 billion in 2007, a $55 billion increase over its funding this
year. The measure now moves to the full Senate, where debate could
begin as early as today.

Although some lawmakers are hesitant to cut Medicare in an
election year, there is pressure to trim spending for entitlement
programs to help reduce the nation’s deficit.

Senate Budget Committee Chairman Judd Gregg, R-N.H., said that
passing the Senate version will be a challenge. Democrats have
blasted the plan and, according to press reports, it isn’t faring
much better with some Republicans. “I’m not going in with the
votes, I can tell you that much,” Gregg told The Associated Press.
“There’s a high level of angst and indecision out there.”

Before the committee vote last week, the American Association
for Homecare delivered letters to both Senate and House budget
committee members expressing opposition to the 13-month cap
proposed in Bush’s budget and the 36-month oxygen cap in the
Deficit Reduction Act. And, according to the association, Sen.
Michael Crapo, R-Idaho, led an effort to prevent home oxygen from
being a target in the Senate bill. “As chair of the Congressional
COPD Caucus, Sen. Crapo understands the importance of medical
oxygen therapy to millions of Americans who suffer from respiratory
disease,” said Michael Reinemer, the association’s vice president
for communications and policy.

In light of the current and proposed cuts, AAHomecare is
conducting a survey to quantify the costs associated with provision
of medical oxygen, as well as other overhead costs such as
compliance with state and federal regulations. The deadline for
submitting the survey has been extended to Friday. To receive a
copy, contact Ashley Ridlon at [email protected] or (703)
535-1894.