The Bush administration's recent proposal to revamp Medicaid would reduce public health funding by almost half a trillion dollars over the next 10 years, causing millions of people to lose coverage, according to a Families USA report released today.
Bush officials say their plan would make it easier for states to alter Medicaid offerings by freeing them from the federal waiver process for some kinds of changes.
But the Families USA report concludes that the administration's proposal would cause large funding cutbacks in Medicaid and the State Children's Health Insurance Program (SCHIP), growing each year.
Specifically, the report says Medicaid and SCHIP funding would be cut by $8 billion, or 3%, in 2004; by $49 billion, or 10%, in 2009; and by $105 billion, or 16%, in 2013.
In total, it says the cuts amount to $492 billion for the two programs in the next 10 years.
At the 16% level, the cuts would amount to almost 7.5 million people losing coverage, the report says.
The report is available on the Families USA Web site.