THE WHITE HOUSE

Office of the Press Secretary

White House Fact Sheet on Impact of Republican Medicare, Medicaid

Cuts on Western States

CALIFORNIA

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on California

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to California by $54 billion.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of California's over 3.6 million Medicare beneficiaries would pay as much as $4,100 more in premiums and copayments over the seven years; couples would pay at least $8,200 more. Overall, the state of California would lose $10 billion in Medicare funding in 2002, and $36 billion over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of California would lose $5 billion in Federal Medicaid funding in 2002 and $18 billion over the seven years, a reduction of 31 percent in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 5.0 million recipients. According to this study, these cuts would mean that California could have to cut off coverage for 1.2 million recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.

ALASKA

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on Alaska

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to Alaska by $595 million.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of Alaska's over 32,000 Medicare beneficiaries would pay as much as $1,350 more in premiums and copayments over the seven years; couples would pay at least $2,700 more. Overall, the state of Alaska would lose $42 million in Medicare funding in 2002, and $166 million over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of Alaska would lose $121 million in Federal Medicaid funding in 2002 and $429 million over the seven years, a reduction of 32 percent in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 69,000 recipients. According to this study, these cuts would mean that Alaska could have to cut off coverage for 22,000 recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.

HAWAII

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on Hawaii

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to Hawaii by $2 billion.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of Hawaii's over 146,000 Medicare beneficiaries would pay as much as $3,050 more in premiums and copayments over the seven years; couples would pay at least $6,100 more. Overall, the state of Hawaii would lose $362 million in Medicare funding in 2002, and $1 billion over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of Hawaii would lose $161 million in Federal Medicaid funding in 2002 and $572 million over the seven years, a reduction of 32% in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 121,000 recipients. According to this study, these cuts would mean that Hawaii could have to cut off coverage for 36,000 recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.

NEVADA

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on Nevada

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to Nevada by $2 billion.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of Nevada's over 182,000 Medicare beneficiaries would pay as much as $3,000 more in premiums and copayments over the seven years; couples would pay at least $6,000 more. Overall, the state of Nevada would lose $533 million in Medicare funding in 2002, and $2 billion over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of Nevada would lose $157 million in Federal Medicaid funding in 2002 and $516 million over the seven years, a reduction of 29% in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 95,000 recipients. According to this study, these cuts would mean that Nevada could have to cut off coverage for 26,000 recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.

OREGON

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on Oregon

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to Oregon by $5 billion.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of Oregon's over 460,000 Medicare beneficiaries would pay as much as $2,525 more in premiums and copayments over the seven years; couples would pay at least $5,050 more. Overall, the state of Oregon would lose $844 million in Medicare funding in 2002, and $3 billion over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of Oregon would lose $516 million in Federal Medicaid funding in 2002 and $2 billion over the seven years, a reduction of 31% in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 411,000 recipients. According to this study, these cuts would mean that Oregon could have to cut off coverage for 118,000 recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.

WASHINGTON

The Republican Budget Resolution Conference Agreement: Impact of the Medicare and Medicaid Cuts on Washington

Republicans are proposing to cut more than $450 billion from health care between 1996 and 2002 -- $270 billion from Medicare and $182 billion from Medicaid. In combination, these cuts are more than four times anything ever enacted. Most of the $270 billion in Medicare cuts would not be necessary without the Republicans' $245 billion tax cut for well-off Americans. Over the seven-year period, the combined Medicare and Medicaid cuts of the Republicans would reduce Federal health care dollars to Washington by $7 billion.

     Medicare
     Nationally, the $270 billion in Medicare cuts means that the average

beneficiary would pay at least $2,825 more in premiums and copayments over seven years; couples would pay at least another $5,650. Under a recent House Republican proposal, in 2002 alone an average beneficiary in a nursing home would face an increase of at least $1,400. Beneficiaries using home health care services would pay on average an additional $1,700 in 2002.

Each of Washington's over 671,000 Medicare beneficiaries would pay as much as $1,675 more in premiums and copayments over the seven years; couples would pay at least $3,350 more. Overall, the state of Washington would lose $818 million in Medicare funding in 2002, and $3 billion over seven years.

     Medicaid
     The Medicaid cuts proposed by Republicans would force states to

slash services, provider payments, and eliminate coverage for 8.8 million children, elderly, and disabled individuals in 2002, according to the Urban Institute. The only way to avoid these reductions in coverage would be for states to increase their spending by 40 percent -- by raising property or sales taxes, or cutting other critical state spending.

Overall, the state of Washington would lose $1 billion in Federal Medicaid funding in 2002 and $4 billion over the seven years, a reduction of 31 percent in the year 2002 alone, according to the Urban Institute. This will have a devastating impact on the state's current 668,000 recipients. According to this study, these cuts would mean that Washington could have to cut off coverage for 183,000 recipients in 2002, likely adding them to the ranks of the uninsured.

     The President's Balanced Budget Proposal
     The President shows how it is possible to balance the budget, assure

that the Medicare Trust Fund remains solvent for at least another decade, and expand benefits and choice of plans without imposing any new Medicare beneficiary cost increases. His Medicare savings, which are less than half ($124 billion) of the Republican proposal ($270 billion), come from health care providers and through a major new fraud and abuse initiative.