[Congressional Record Volume 149, Number 56 (Tuesday, April 8, 2003)]
[House]
[Page H2868]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       CONCERNING THE CONFERENCE REPORT ON THE BUDGET RESOLUTION

  The SPEAKER pro tempore. Pursuant to the order of the House of 
January 7, 2003, the gentleman from New Jersey (Mr. Pallone) is 
recognized during morning hour debates for 5 minutes.
  Mr. PALLONE. Mr. Speaker, I rise on the floor to call attention to 
the fiscal year 2004 budget resolution conference report and to express 
my opposition to the inclusion of any Medicaid or Medicare cuts as part 
of the final budget resolution.
  Mr. Speaker, although the House-passed budget reconciliation contains 
an instruction to cut the Medicaid program by $93 billion over 10 
years, neither the Senate budget resolution nor the administration 
budget includes such devastating cuts to the Medicaid program. As 
Members know, the Medicaid program provides essential health coverage 
to 47 million low-income children, working families, seniors and people 
with disabilities. Moreover, this critical safety net program under 
Medicare also contributes significantly to State economies by 
stimulating employment and business activity which we cannot afford to 
undermine.
  States, Mr. Speaker, are currently facing the most severe budget 
crisis since World War II and nearly every State has proposed or 
enacted cuts in its Medicaid program. Any reduction in Federal Medicaid 
funding would place millions of vulnerable Americans now receiving 
Medicaid in jeopardy of losing their health insurance. Federal funding 
reductions would force States to implement even deeper cuts by 
restricting eligibility, eliminating or reducing critical health 
benefits and severely cutting or freezing provider reimbursement rates. 
As a result, Medicaid funding cuts would add millions more to the ranks 
of the 41 million Americans that are already uninsured.
  In addition, Mr. Speaker, I oppose inclusion in the budget of 
sweeping mandatory cuts of potentially $75 billion over 10 years to the 
Medicare program. Although the Republican budget on the surface level 
appears to take a softer line on Medicare cuts as compared to Medicaid, 
in fact the budget requires billions of dollars of mandatory program 
cuts to the Medicare program. I will show my colleagues how. The budget 
provides $400 billion in a reserve fund for Medicare reform. However, 
the budget also instructs the Committee on Energy and Commerce to come 
up with $107 billion that have to be in cuts to either Medicare, 
Medicaid or S-CHIP, the kids' health insurance program, over 10 years 
and also requires the Committee on Ways and Means to require $62 
billion in cuts, some or all of which could fall on Medicare. So 
although there is not an absolute requirement that it comes from 
Medicare, because those two committees will not have many choices, we 
are going to see Medicare cuts as well, as well as the mandatory 
Medicaid cuts.
  Mr. Speaker, while the budget resolution does not direct Medicare 
cuts, I am very concerned because it does not preclude them and these 
committees will be allowed to cut Medicare if that is what is required 
to fulfill the reconciliation instructions. As a member of the 
Committee on Energy and Commerce, I would do my best to prevent such 
cuts from taking place because the effects would be devastating to the 
structure and function of the Medicare program and, more importantly, 
to the health of our seniors and disabled.
  Again, Mr. Speaker, I have to express my strong opposition to the 
inclusion of any Medicaid or Medicare cuts in the final budget 
resolution. They will only mean that more people will be uninsured, 
less health care services will be provided to a whole range of 
individuals, and all this is being done basically so that the 
Republicans can make more cuts for wealthy people, more tax cuts for 
the wealthy, more tax cuts for corporate interests. It should not be 
done at the expense of Medicare or Medicaid.

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