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Washington, D.C. ---- U.S. Rep. Frank Pallone, Jr. (D-NJ), Chairman of the House Energy and Commerce Health Subcommittee, gave the following statement today at a Committee hearing on the President Bush's Fiscal Year (FY) 2008 budget with Health and Human Services (HHS) Secretary Michael Leavitt.
"Thank you, Mr. Chairman. What a difference two weeks makes at the White House. Yesterday, President Bush sent his budget proposal to Congress that completely contradicts statements he made on health care two weeks ago during his State of the Union Address. He specifically stated, 'when it comes to health care, government has an obligation to care for the elderly, the disabled and poor children.'
"Yet, yesterday, the president proposed a budget that includes serious cuts to the very programs that serve these vulnerable populations ... Medicare, Medicaid, and the State Children's Health Insurance Program (SCHIP). So once again, it appears as though the President's previous statements are nothing but empty rhetoric. If we were to follow what the President has proposed, it would be impossible for our government to meet the health care needs of the elderly, disabled, and the poor.
"I am most alarmed about the President's proposal to reauthorize the SCHIP program. Under the President's plan, the federal government would reduce payments to States who cover children above 200 percent of the Federal Poverty Line. This would mean a drastic reduction in aid for my home state of New Jersey, which covers kids up to 350 percent of the federal poverty line. If enacted, I have no doubt that it would spell disaster for low-income children in New Jersey and across the country.
"As Congress works to reauthorize SCHIP, I urge the President to scrap his plan and work with Democrats to put forward a realistic proposal that maintains current eligibility standards and improves outreach and enrollment efforts.
"I also have serious concerns about the mix of Medicare and Medicaid proposals included in the President's budget. Once again, the president has put Medicare and Medicaid on the chopping block. Instead of trimming the fat currently going to managed care companies, the president will slash reimbursements to providers and burden beneficiaries with higher premiums.
"Noticeably absent from the president's budget, once again, is any mention of a physician payment fix. Apparently, ensuring physicians receive adequate payment is not a priority for this administration.
"Finally, let me reiterate my firm opposition to the president's new health insurance tax proposal. This will be disastrous for consumers because it forces them into the unstable and uncertain individual insurance market. As with Health Savings Accounts (HSAs) and Association Health Plans (AHPs), the President's new proposal could potentially increase the number of American's without insurance, especially among our most vulnerable citizens who need it most. I am also firmly opposed to his plan to divert DSH payments away from our safety net hospitals.
"I wholeheartedly agree with the President that we need to do more to reduce the ranks of the uninsured. However, I disagree with the means he is proposing to get us there. As Congress considers possible solutions to this growing problem, we should be guided by the principle of "first, do no harm". Unfortunately, the President's latest budget proposal fails to meet this test.
"I have many other concerns with the President's budget proposal. Far too many to mention now, but I look forward to asking the Secretary some questions later today. Thank you." |
