By Crystal D. Swann
March 28, 2005

The Senate voted 52-48 to remove proposed $14 billion cuts in Medicaid funding from the 2006 budget resolutions- process March 18. In addition, the approved amendment creates a commission to study and recommend possible changes to the program. The amendment, sponsored by Senators Gordon Smith (OR) and Jeff Bingaman (NM), was supported by Senators Smith, Lincoln Chafee (RI); Norm Coleman (MN); Susan Collins (ME); Mike DeWine (OH); Olympia Snowe (ME) and Arlen Specter (PA) and all 45 Senate Democrats.

The budget resolution approved last week by the Senate Budget Committee had called for $32 billion in cuts over five years for mandatory spending programs, including Medicaid, which would have been similar to cuts proposed by President Bush. In his FY 2006 budget plan, Bush suggested revisions to Medicaid that he estimated would save $60 billion over 10 years and $14 billion over five years.

Before senators approved the amendment averting the Medicaid cuts, Senate Majority Leader Bill Frist had proposed a nonbinding "Sense of the Senate" amendment that would have distributed any savings from the $14 billion in Medicaid cuts to states and would have prevented any loss in coverage for beneficiaries. However, it was defeated on a 51-49 vote.

The House approved by a vote of 218-214 its budget resolution, which calls for significant cuts in Medicaid and other entitlement programs. The budget resolution as approved by the House Budget Committee last week would reduce spending on mandatory programs, including Medicare and Medicaid, by $69 billion over five years.

The House and Senate budgets now move towards a very difficult reconciliation process because of the vast differences in the approved budgets.