THE WHITE HOUSE

Office of the Press Secretary

FACT SHEET

IMPACT OF REPUBLICAN BUDGET CUTS ON RURAL AMERICA

HEALTH CARE IN RURAL AMERICA

The Republican MEDICARE Cuts Will Force 9.6 Million Older And Disabled Americans In Rural America To Pay Higher Premiums and Higher Deductibles For A Weakened Second Class Medicare Program.

Medicare Spending For People In Rural Areas Of America Will Be Cut By $58 billion Over Seven Years -- A 20 Percent Cut In 2002 Alone.

• The Republican Cuts Will Increase The Severe Financial Pressure On Rural Hospitals In America And Force Some Rural Hospitals To Close. Today, rural hospitals lose money on Medicare patients while urban hospitals make a small profit. Medicare accounts for almost 40 percent of net patient revenue in the average rural hospital, and as much as 80 percent in some rural hospitals.
• According to the American Hospital Association, under the Republican cuts, the typical rural hospital will lose $5 million in Medicare funding over seven years.
• Rural Medicare Recipients Would Lose Much-Needed Doctors. America's rural Medicare recipients would need 5,084 more primary care physicians to have the same doctor to population ratio as the nation as a whole. Yet the American Medical Association has stated that the cuts in Medicare are so severe that they "will unquestionably cause some physicians to leave Medicare." (New York Times, October 10, 1995.)

The Republican MEDICAID Cuts Will Further Hurt Rural Hospitals And Eliminate Coverage For Millions Of Rural Americans.

• Rural Hospitals Will Suffer Additional Revenue Losses From The $45 Billion Republican Medicaid Cuts. In addition to the average of $5 million rural hospitals will lose from Medicare cuts, rural hospitals will also face revenue shortages due to the severe Republican Medicaid cut.
• As Many As 2.2 Million Rural Americans Will Be Denied Medicaid Coverage, Including:
  • 1 Million Children
  • 230,000 Older Americans
  • 350,000 People With Disabilities
• Over 77,000 Rural Older And Disabled Persons In America

  Could Be Denied Nursing Home Coverage in 2002. Most of the 350,000 people living in nursing homes in rural America are covered by Medicaid. Under the Republican Medicaid plan, approximately 77,000 rural nursing home residents (22 percent) could be denied coverage.

• Over 55,000 Rural Older And Disabled Persons In America Could Be Denied Home Care Benefits in 2002. Most of the 365,600 poor elderly in rural America who need home care are covered by Medicaid. Under the Republican Medicaid plan, approximately 55,000 (17 percent) rural poor elderly who need home care will lose coverage.

FARMING IN RURAL AMERICA

The Republican Budget Slashes Farm Spending By 25 percent over seven years. Farm spending in America will be reduced by $13 billion -- drastically reducing support for commodity programs.

The Republican Budget Will Reduce Farm Income Nationwide. As a result of the Republican cuts, net farm income for target price crops and soybeans is expected to decline by $9 billion over seven years -- a 4 percent reduction in earnings.

TAXES ON WORKING FAMILIES IN RURAL AMERICA

The Republican Budget Raises Taxes On 4 Million Working Families In Rural America By An Average Of $352 in 2002. Republican cuts to the Earned Income Tax Credit will impose a $59.2 million tax increase on working families and their children in rural America.

EDUCATION IN RURAL AMERICA

The Republican Education Cuts Will Deny 113,000 Children Basic And Advanced Skills In Rural America in 1996. Title I funds in rural areas will be cut by $113 million -- more than 17 percent -- denying crucial assistance at a time when many small-town and rural schools are already having trouble making ends meet.

PUBLIC HEALTH AND THE ENVIRONMENT IN RURAL AMERICA

The Republican Budget Will Reduce The Amount Of Money That States Can Spend To Keep Water Clean In Small Communities And Rural Areas By 20 percent Compared To The President's Balanced Budget. These cuts will derail initiatives that are working to fight water pollution and protect public health.

The Republican Budget Proposal Will Stop Or Slow The Clean-up Of At Least 115 Toxic Waste Sites In Rural America. Nationwide, the Republican Budget reduces spending on toxic waste cleanups by 36 percent -- or $560 million -- below the President's balanced budget. These cuts will restrict or stop clean-ups of sites nationwide that pose a threat to public health and the environment.

TRANSPORTATION IN RURAL AMERICA

The Republican Budget Will Cut Transportation Grants For Rural Areas By 20 percent. Republican proposals cut $57.4 million for rural transportation in America. These funds are essential for giving residents access to medical services, supermarkets and grocery stores, and job training.

NUTRITION IN RURAL AMERICA

Republican Cuts Will Slash Up To 15 percent From Food Assistance To Rural America. Republican budget cuts will fall particularly hard on the rural poor, cutting as much as $46.7 billion in food assistance from rural areas over seven years.

Republican Nutrition Cuts Will Eliminate Jobs In America. These cuts will reduce farm prices and incomes, and result in the loss of as many as 328,900 jobs nationwide -- including up to 57,800 rural jobs.

HOUSING IN RURAL AMERICA

The Republican Housing Cuts Will Reduce Spending On Public Housing Capital In Rural America 46 percent Below The President's Request in 1996. Cuts to public housing capital assistance in rural areas will total $460 million in 1996, severely hindering efforts by rural housing agencies to rehabilitate run down public housing projects and provide much needed security and anti-crime programs.

The Republican Budget Will Cut 40 percent From Assistance To Homeless Persons in Rural Areas in 1996. The Republican plan will cut $108 million in homeless assistance to rural areas. The reduction will mean 4.9 million fewer nights of shelter for America's rural homeless.

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/U.S. Newswire 202-347-2770/