CONTACT CONGRESS IN SUPPORT OF FEDERAL RELIEF TO STATES

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ANCOR Supports S. 138/H.R. 816  Bills to Provide Immediate, Temporary Federal Medicaid and Fiscal Relief to Preserve Long-Term Supports, Economic and Job Security

 

 

Background:  The states’ collective current-year budget shortfall is estimated to be $80 billion—described as the worst deficits since World War II.  Forty-nine states have planned or are implementing Medicaid cuts in fiscal year 2003, with 32 of these states already having made a second round of Medicaid cuts. States have already reduced or frozen provider reimbursement rates in 37 states, restricted eligibility in 27 states, reduced benefits in 45 states, increased co-payments in 17 states, and 17 states have taken action to reduce spending on community and institutional long-term services. 

 

Legislation Needed:  Senators Rockefeller (D-WV), Collins (R-ME), Smith (R-OR), Nelson (D-NE), Clinton (D-NY), Hutchison (R-TX), and Graham (D-FL) introduced in January the bipartisan State Budget Relief Act of 2003 (S.138) which is designed to help states with their growing Medicaid and social service budget crises by providing $20 billion in temporary, immediate infusion of federal assistance to states over 18 months.  [Last year a similar bill was passed in the Senate by an overwhelmingly vote of 77 Senators; however, the House failed to take up its bill sponsored by Representatives King (R-NY) and Brown (D-OH), and fiscal relief died in the 107^th Congress.]

 

Senate 138 Bill:  In general, S. 138 would:

·         Provide $10 billion of federal funding by way of a 2.45 percentage point increase for the last two quarters of fiscal year 2003 and all of fiscal year 2004 in the Federal Medical Assistance Percentage (FMAP).  The FMAP is the federal government’s share (formula match for each state) of the joint federal/state Medicaid spending for each year.

·         Provide $10 billion increase in the Title XX Social Services Block Grant program which states use to provide services and resources to people with disabilities, the elderly, and children.

 

House Bill:  On February 13th, Representatives King and Brown reintroduced their bill—the State Budget Relief Act of 2003 (H.R. 816)—which provides for a 2 percentage point increase in the FMAP for each state and an additional 2.5 percentage point increase for states where high unemployment continues.  The House bill does not provide for a specified amount of federal funding.

 

Economic Benefits of Medicaid:  Keep in mind that Medicaid spending adds to the overall economic stability of states.  State spending on Medicaid pulls in new federal dollars.  These federal dollars are a powerful stimulus to state economies.  The federal dollars that flow into a state to match state Medicaid spending generate new business activity, increase output of goods and services, create new jobs, and increase aggregate state income.  In turn, these positive effects increase state revenues, which can in turn support further state spending.  In 2001, Medicaid spending generated:

·         Over 2.9 million jobs nationwide.

·         Approximately 58,785 jobs on average in each state.

·         An almost threefold return in new business activity throughout the states as dollars pass from one person to another (the multiplier effect) in successive rounds.

As Families USA declared in January:  Medicaid spending is good medicine—both for the health of state residents and for an ailing state economy. For the economic benefit of Medicaid investment in your state and the impact of an increase under S. 138 on wages, jobs, and business activity in your own state, go online http://www.familiesusa.org/FMAP/FMAPstates.htm.

 

TAKE ACTION:  Contact Your Senators and Representatives Immediately and Tell Them that Medicaid Provides the Lifeline for People with Disabilities.  Senators and Representatives on the budget committees are a top priority (see listing below*) for ANCOR members to contact immediately as they will begin crafting the budget resolution next week.   You can go online at www.senate.gov or www.house.gov for fax, email, or telephone information. 

 

General Message: Urge your Senators to co-sponsor and support the bipartisan State Budget Relief Act of 2003 (S. 138) and urge your Representatives to co-sponsor and support the bipartisan State Budget Relief Act of 2003 (H.R. 816).  Medicaid is the lifeline for individuals with disabilities and is the primary source of funding for long-term supports and services.  This bipartisan bill will temporarily increase the federal government’s share of Medicaid spending and help avert the growing Medicaid crisis in my state.  The health and safety of people with disabilities is at stake.  As federal budget options are weighed and balanced, the equation must include the economic benefits of Medicaid as a stimulus to state economies.  Congress must step in and help preserve health and long-term support security, job security, and economic security in my state. 

 

1.       Personalize with the number of people to whom you provides supports and number of employees providing supports.

2.       Individualize by telling them (using the chart that follows) the amount of additional federal assistance that would be available to your state if S. 138 were enacted.

3.       Stress the general economic benefit of Medicaid spending as a critical investment. Send them your state-specific one-pager on Increasing the Federal Share for Medicaid Will Stimulate Your State’s Economy from Families USA at http://www.familiesusa.org/FMAP/FMAPstates.htm.

4.       Personalize your message with an illustration of the importance of Medicaid benefits to someone to whom you provide supports.

5.       Personalize your message with an illustration of the adverse cuts your state has already taken or is about to take and the effect on individual(s) to whom you provide supports.

 

Senate and House Committee Members’ Message:  These members are a top priority. The first step to ensuring this federal infusion is to obtain outlays for an FMAP increase in the Senate and House Budget Resolutions that budget committees will be crafting next week.  The budget resolution will provide relevant Senate and House committees with tax and spending authority and instructions to committees for legislation to provide this additional federal money.  This federal assistance could then be made a part of the economic stimulus package to be passed later this spring.   For ANCOR Members who have a Senator or Representative on the budget committees, contact them immediately:  As you begin work on the fiscal year 2004 budget resolution, I urge you to support immediate, temporary federal relief in order to avert further cuts in Medicaid and to include outlays for federal fiscal relief to the state’s in the budget resolution.  Urge Senators to co-sponsor and support S. 138 and Representatives to co-sponsor and support H.R. 816.  You can follow with the points outlined in the general message above.

 

Please remember to let ANCOR know of your efforts—provide copies of letters and updates to Suellen Galbraith by email at sgalbraith@ancor.org or by fax at 703-535-7860.

 

 

 

*Listing of Congressional Budget Committee Members

 

Senate Budget Committee: Chairman Nickles (R-OK), Allard (R-CO), Bunning (R-KY), Burns (R-MT), Cornyn (R-TX), Crapo (R-ID), Domenici (R-NM), Ensign (R-NV), Enzi (WY), Grassley (R-IA), Gregg (R-NH), Sessions (R-AL), Ranking Minority Member Conrad (D-ND), Byrd (D-WVA), Corzine (D-NJ), Feingold (D-WI), Hollings (D-SC), Johnson (D-SD), Murray (D-WA), Nelson (D-FL), Sarbanes (D-MD), Stabenow (D-MI), and Wyden (D-OR).  Those members listed in bold voted in favor of the amendment last year to provide temporary state fiscal relief.  (You can obtain fax, email, and telephone numbers of Senate Budget members online at http://budget.senate.gov/.)

 

H.R. 816 in House Budget Committee:  Chairman Nussle (R-IA), Barrett (R-SC), Bonner (R-AL), Brown (R-SC), Brown-Waite (R-FL), Diaz-Balart (F-FL), Franks (R-AR), Garrett (R-NJ), Gutknecht (R-MN), Hastings (R-WA), Hensarling (R-TX), Hulshof (R-MO), McCotter (R-MI), Portman (R-OH), Putnam (R-FL), Ryun (R-KS), Schrock (R-VA), Shays (R-CT, Tancredo (R-CO), Thornberry (R-TX), Toomey (R-PA), Vitter (R-LA), Wicker (R-MS), Ranking Minority Member Spratt (D-SC), Baird (D-WA), Baldwin (D-WI), Capps (D-CA), Cooper (D-TN), Davis (D-AL), Delauro (D-CT), Edwards (D-TX), Emanuel (D-IL), Ford (D-TN), Hooley (D-OR), Majette (D-GA), Kind (D-WI), Moore (D-KS), Moran (D-VA), Neal (D-MA), Scott (D-VA), and Thompson (D-CA).  (You can obtain fax, email, and telephone numbers of Senate Budget members online at http://www.house.gov/budget/members.htm.)

 

 

 

 

 

 

Suellen:ANCOR Members; FMAPAlertNow.marc.03