The Latest: HAP Gets Entire PA Delegation To Oppose Medicare and Medicaid Cuts: Every member, but one, of the Pennsylvania Congressional delegation signed the Congressmen Phil English (R-PA) and Richard Neal (D-MA)  letter to House Budget Committee Chairman John Spratt (D-SC) and Ranking Member Paul Ryan (R-WI), urging the committee to reject the President's proposed Medicare and Medicaid cuts. Congressman Joe Pitts sent his own letter in support of Pennsylvania hospitals. In addition, Senators Specter and Casey signed a letter to Senate Budget Committee leaders urging rejection of the President's Medicare and Medicaid budget plan.

Background: President Bush unveiled a federal fiscal year (FFY) 2009 budget proposal which proposes cutting Medicaid by $18 billion over five years, nationwide. These cuts are in addition to the almost $4 billion in regulatory Medicaid cuts to public and teaching hospitals nationwide proposed last year by the Bush Administration, including eliminating federal funding for medical education under the Medicaid program.

The budget proposal also includes drastic reductions in Medicare teaching payments, hospital and health system marketbasket updates, hospital disproportionate share (DSH) payments, and reimbursement for Medicare bad debts. These reductions would cut payments to hospitals and hospital-based skilled nursing facilities, home health agencies, hospices, and inpatient rehabilitation providers over the next five years by nearly $200 billion nationally.

State and Federal Advocacy Webcast

• PA Hospitals: President’s Budget Proposes Nearly $5.5 Billion in Medicare Cuts to Hospitals
  News Release
• President’s 2009 Federal Budget Proposal
  HAP Memo
• PA Hospitals: “Avalanche of Cuts” Buries Patients, Hospitals Under President’s Medicare/Medciaid Budget
  News Release