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Powerful Seniors' Lobby Pledges Action Against Health Program Cuts

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AARP Vows Medicare, Medicaid Budget Fight

Jan. 5, 2005 -- Washington's most powerful senior citizens' lobbying group is gearing up for several health care fights in 2005, warning lawmakers that it is prepared to throw its weight against possible efforts to cut federal programs.

Leaders from AARP said Wednesday that the group is watching for spending cuts in big programs such as Medicare and Medicaid upon which millions of seniors rely for medical care.

AARP has considerable influence on Capitol Hill, where it has a history of helping sway key votes on issues affecting seniors. Though the group says that its top 2005 priority will be the coming fight on privatizing Social Security, it is also planning to fight for legalized prescription drug importation and against possible cuts to Medicaid.

"We expect to make the telephones ring" in lawmakers' offices, William Novelli, AARP's CEO says.

The extent of possible cuts to Medicare or Medicaid remains to be seen. Lawmakers and interest groups are waiting for President Bush to release his fiscal 2005 budget in early February.

But some reductions seem likely as Congress and the White House strive to make good on pledges to cut the huge federal deficit by half during the next four years.

One proposal widely expected from the White House is a reprise of a 2003 plan to offer states increased federal Medicaid payments in exchange for program changes and payment reductions in future years. The plan would have reduced federal oversight of Medicaid payments, instead sending block grants to governors to run the program.

The plan was met with a tepid response from many governors and was never acted upon by Congress. But some form of the block grant proposal could save the government billions.

AARP leaders vowed to fight block grants, saying that they threaten to undermine the program's long-term role as a health care safety net for poor seniors and others. "We don't think block grants are a viable option," says Kirsten Sloan, the group's chief health care lobbyist.

Bush could also ask Congress to consider cutting Medicare payments to doctors, hospitals, and other health providers as a way to help offset the cost of the new prescription drug benefit, which next year is set to begin at an estimated cost of some $500 billion over 10 years.

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