WASHINGTON, FEB. 8, 2006 - Today, President Bush signed into law S. 1932, the Deficit Reduction Act, which provides $40 billion in savings over 10 years to reduce the budget deficit. "Not only does this measure produce savings for American taxpayers, it includes crucial reforms for major programs," said Rep. Cliff Stearns. "It will help make the federal government more effective and efficient in meeting its responsibilities to the American public."
In reforming and improving the Medicaid program, S. 1932 contains the provisions from Stearns' bill, H.R. 4153, giving disabled Medicaid beneficiaries more choices in their care. Explained Stearns, "My proposal gives states the option of offering a choice of self-directed personal assistance services, which is commonly known as 'Cash & Counseling.' This is revenue neutral, improving the program at no cost." Cash & Counseling provides Medicaid consumers with a flexible monthly allowance that is based on an individualized budget, which allows them to direct and manage their own personal assistance services and address their own specific needs. Providing enhanced choice is a step endorsed by various disability groups, the AARP, and others.
Showing bi-partisan unity, the nation's governors proposed Medicaid reform to save the program from collapse. S. 1932 will slow the growth in spending for the Medicaid program from 7.3% to 7.1% a year. These changes include allowing states to charge basic co-pays to higher income beneficiaries, reducing Medicaid overpayment for drugs, and providing states with the flexibility to tailor their benefit package to meet the specific health care needs of beneficiaries.
For Further Information Please Contact Paul Flusche at 202-225-5744 or Email.
