WEST VIRGINIA'S ELDERLY THREATENED BY FEDERAL BUDGET CUTS - Medicaid Cuts Affect Health Care

(11/09/2005)
The U.S. House of Representatives will vote this week on a budget bill that could deny health and long-term care services to people who can least afford them.

Major cuts are expected that will affect children, poor families and the elderly.

West Virginia's Congressional representatives will vote on the federal budget reconciliation bill, and their votes could make the difference in whether important health and long-term care coverage is denied to those who have simply helped family members or given money to charity.

What's at stake is eligibility for Medicaid, the primary source of health care for millions of vulnerable low-income Americans and long-term care for millions of older Americans.

Nearly 50 million Americans have no health care, and about an equal number have limited insurance coverage.

West Virginia, a state that has tightened welfare benefits more than most, is expected to be a major loser in the budget reduction.

Four decades after a U.S. president declared war on poverty, more than 37 million people in the world's richest country are officially classified as poor and their number has been on the rise for years.

The working poor are stuck with a minimum wage that adjusted for inflation is worth about $4 and hour.

Congressional Republicans say it is time to bring down the national deficit following the Iraqi War, hurricane aid and tax breaks that mostly benefited wealthier Americans.

The budget bill would penalize older West Virginians by extending the number of years the state can "look back" at an individual's financial records to determine Medicaid eligibility and by imposing stricter penalties on people who have given money to family or charity.

AARP State Director Frank Bellinetti explains, "The House of Representatives is trying to reduce the federal budget by cutting coverage for some of the neediest individuals - our low-income elderly.

Medicaid is the primary source of nursing home coverage for millions of Americans who can not afford long-term care. Stricter eligibility will unfairly punish those who have been charitable to their families and their communities.

The bill in the House also changes the penalty date to deny coverage at the exact time that people need care and cannot pay for it themselves.

For example West Virginia residents could be turned down for nursing home and other long-term care services five years down the road from donating to hurricane victims and other charities today.

Another huge setback for many residents in West Virginia who have seen their property values skyrocket over the years is a provision that would deny Medicaid coverage to those with sizable home equity.

"Many older West Virginians with modest incomes have watched their home values climb not knowing that they were also watching their health security fade away," Bellinetti said.

States currently have the ability to tap into home equity to reimburse themselves for Medicaid services after a beneficiary dies.

"Prohibiting coverage to people up front would require them to sell homes they may have lived in for decades, or seek reverse mortgages that require thousands of dollars in transaction costs," Bellinetti added.

AARP has identified several ways to make Medicaid stronger, while at the same time saving the program billions of dollars.

AARP supports reforms that include getting better prices for prescription drugs.

The current Medicare prescription program pays full-fare for the drugs.

AARP says letting people control their own long-term care services through cash and counseling programs, and expanding access to home and community-based care that is often less costly than nursing homes.

"Cutting the federal budget by cutting Medicaid eligibility is a serious threat to millions in need. We urge West Virginia's Congressional representatives to vote against the House budget reconciliation bill so these harmful changes do not become law.

AARP is working with Members of Congress on both sides of the aisle to ensure that the House budget package contains real reforms that strengthen Medicaid, not to pass policies that deny care to those in need," Bellinetti concluded.

AARP has a toll free number for those concerned to call their Representatives in Congress, at 1-800-928-8084 and urge them to vote NO on the House's budget reconciliation bill.