Screw The Poor! They Didn't Contribute To Our Campaign!

Leadership Conference on Civil Rights Education Fund and Leadership Conference on Civil Rights
Press Release - National Women's Law Center

President Threatens Veto If Senate Reduces Giveaways to Health Care
Threat Could Mean Deeper Cuts to Medicaid and Other Programs for Poor Families

Related Links
National Women's Law Center website
More on poverty/welfare
FOR IMMEDIATE RELEASE
November 2, 2005
Ranit Schmelzer, Jenice Robinson
202-588-5180

(Washington, D.C.) President Bush threatened to veto the budget bill currently being debated by the Senate because it would trim financial incentives for mammoth health insurance companies under the Medicare prescription drug plan. This is a rejection of the Senate's effort to make less draconian cuts to services vital to low-income women and their families, the National Women's Law Center said today.

"This veto threat dismisses the Senate's effort to ease excessive cuts to programs such as Medicaid that benefit poor women and families," said Nancy Duff Campbell, Co-President of the National Women's Law Center. "The President's action makes it even more likely that the poor will bear the brunt of budget cuts designed to make way for $70 billion in new tax breaks for the wealthy."

The Senate and House are working on budget bills that would cut $39 billion and $50 billion, respectively, from various federal programs. The Senate bill is not as painful for poor Americans. It attempts to reduce cuts to programs such as Medicaid, which provides health care for poor Americans, by spreading the cuts over a broader range of programs. One provision in the Senate bill would reduce financial giveaways to insurance companies that offer prescription drug benefits under the controversial new Medicare prescription drug plan. The modest cut to incentives for insurance companies would mean less harsh cuts to the Medicaid program; however, President Bush has said he would veto any such measure.

"Only a few weeks ago, President Bush pledged to confront poverty with bold action," Campbell said. "Now, the President is ruling out cuts that might touch the rich and powerful corporations and encouraging cuts that target the poor. This isn't bold and it's no way to tackle poverty."

The House bill proposes deeper cuts to Medicaid while leaving Medicare bonuses for insurance companies untouched. More than 53 million Americans rely on Medicaid for health coverage. Medicaid beneficiaries have severely limited financial means and already spend significantly more of their income on health care than middle-income people with private coverage. The increased costs they would bear under the House bill would discourage them from getting the care they need for themselves and their children.

Besides Medicaid, the House bill would cut spending deeply for other programs vital to low- and middle-income women and their families such as Food Stamps, child support enforcement, foster care, student loans, and other services.

If the bills pass the Senate and House, differences will have to be resolved in conference. The President's veto threat means any bill that emerges is likely to resemble the House version. The Senate is expected to vote on its bill tomorrow; the House is expected to vote next week.

"Congress must get its priorities straight, and it must be honest with the American people," Campbell said. "Cutting programs for low- and middle-income Americans while giving lavish benefits and tax breaks to special interests and the very wealthy is no way to help hurricane survivors, prepare for an outbreak of avian flu, or rein in the deficit - and Congress and the President should not try to sell it as such."

Featured Member: AARP
© 2002 Leadership Conference on Civil Rights / LCCR Education Fund