NATIONAL CHILD HEALTH ADVOCATES URGE CONGRESS TO REJECT HARMFUL CUTS TO MEDICAID IN ADMINISTRATION'S BUDGET PROPOSAL

Washington, DC — The American Academy of Pediatrics (AAP), March of Dimes and the National Association of Children's Hospitals (N.A.C.H.) urge Congress to reject harmful budget cuts to Medicaid, the country's largest health insurance program for children. Harmful cuts to Medicaid, as proposed by the Bush administration, would weaken the entitlement program's guarantee to provide all eligible children with critical health care coverage they need but their families cannot afford on their own.

“We stand at important crossroads in the health and well-being of our children,” said Lawrence A. McAndrews, president and CEO of the N.A.C.H. “One road continues a 40 year commitment to helping children stay healthy through comprehensive health coverage to all eligible children through Medicaid. The other path weakens the Medicaid safety net for millions of children from low-income working families. We urge Congress to keep Medicaid strong for children as it did in 2003 and 2004 when it rejected federal cuts to Medicaid.”

Medicaid is a low-cost program for children who make up more than half of enrollees. Based on per capita spending, children cost less than any other population covered by Medicaid. It is also comparable to private insurance costs despite the fact that children who rely on Medicaid for their health coverage have, on average, more intensive health care needs than do privately insured children.

In addition, proposed changes to Medicaid in the administration's budget could impact Early and Periodic Screening, Diagnosis and Treatment (EPSDT) for children. EPSDT provides children with comprehensive preventive health services and, when needed, treatment.  Its coverage includes comprehensive health and developmental history, appropriate immunizations, vision services, dental services, health education, and lead toxicity screening.

“The budget proposal released by the administration this morning opens the door to the elimination of critical health services for the most vulnerable women, infants and children,” said March of Dimes President Jennifer L. Howse, Ph.D.  “The March of Dimes strongly opposes any attempt to narrow Medicaid benefits for these at risk groups.  Medicaid is the single most important source of coverage for maternity services, accounting for 1.4 million (37%) of births in hospitals, and the Early and Periodic Screening, Diagnosis and Treatment program is a lifeline for millions of low-income infants and children. Many of these children, such as the recent March of Dimes National Ambassador who needed multiple surgeries before reaching school age, require extensive treatment.  Watching these children grow and develop seems a miracle, a miracle often the result of Medicaid and EPSDT services. We should be strengthening, not weakening this program so essential to the health of mothers and children.”   

At the same time the administration's budget calls for outreach and enrollment of more eligible children in Medicaid, proposed cuts to the program would negatively affect service reimbursements to pediatricians and children's hospitals, providers of a disproportionate share of patient care to children dependent on Medicaid.

While children's hospitals provide 40% of all hospital care needed by children on Medicaid, pediatricians and pediatric subspecialists provide a majority of all office visits to children covered by Medicaid.  Some physician practices are accepting fewer Medicaid patients since it often costs more to see a patient than what is reimbursed by Medicaid.  This trend is forcing some patients to forgo care or seek treatment at public clinics or in emergency departments.

“Children are being put on waiting lists for enrollment and losing access to doctors,” said AAP President Carol Berkowitz, MD, FAAP.  “If these Medicaid cuts are implemented, the health of our nation's children will suffer.”

The three organizations, representing more than 100,000 child health advocates, will lobby Congress to adequately fund Medicaid, protect the entitlement and provide Medicaid recipients with timely access to quality benefits and services.

“The huge federal deficit is undeniable,” said Dr. Berkowitz.  “But this isn't a choice to make based only on numbers.  It is a choice to make based on our values and priorities.  We need to protect the most vulnerable among us—the youngest, the poorest and the sickest who have no other options.”

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Editor's Note: For state-by-state Medicaid enrollment numbers for children, please contact Marjorie Tharp, AAP, 202-347-8600.