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    "ocrText": "THE WHITE HOUSE\nOffice of Media Affairs\nSeptember 14, 1995\nContact: 202/456-7150\nALABAMA\nThe Republican Budget Resolution Conference Agreement:\nMedicaid Cuts Will Force States to Reduce Health Coverage\nRepublican's Proposal: Reduces Medicaid Payments to States by 30% in 2002\nRepublicans are proposing to cut more than $182 billion from Federal Medicaid spending\nbetween 1996 and 2002: a cut of 20% over seven years and 30% in 2002. Alabama would\nlose $2 billion over the seven years, a 22% reduction in 2002 alone. Even if Alabama could\nabsorb half of the cuts by reducing services and provider payments, it would still have to\neliminate coverage for 102,000 people in 2002, according to the Urban Institute, including:\n12,300 older Americans;\n25,500 people with disabilities; and\n64,500 children and their families.\nThe Republican proposal would force Alabama to eliminate coverage for about 11,000\npeople needing long-term care in 2002.* Medicaid is the largest insurer of long-term care\nfor all Americans, including the middle class. Currently, Medicaid covers 72% of the 19,500\nnursing home residents in Alabama. Medicaid also serves about 37,400 older Americans and\npeople with disabilities using home care in Alabama. Without Medicaid, families of the\nelderly and disabled could not afford nursing home care that costs an average of $38,000 per\nyear nationally.\nThe Republican proposal would force Alabama to eliminate coverage for 45,800 children\nin 2002. * Currently, 16% of the children in Alabama rely on Medicaid for their basic health\nneeds. Medicaid pays for immunizations, regular check-ups, and intensive care in case of\nemergencies for about 244,000 children in Alabama.\nAlabama could avoid these difficult choices forced by the Republican proposal only by\nincreasing its Medicaid spending by 51% in 2002 -- by raising property or sales taxes, or\ncutting other critical state spending.\nThe President's Balanced Budget Proposal\nThe President's proposal saves $54 billion over seven years from Medicaid, less than one-third\nthe Republican cut and still a significant contribution toward deficit reduction. The President's\nMedicaid policy produces savings by reducing and retargetting disproportionate share\npayments, increasing state flexibility, and limiting the growth in Federal Medicaid spending\nper recipient. This policy constrains Federal spending but allows states to respond to\nunexpected changes in the number of people covered. It does not put states at risk and\ndismantle a program that has served as a critical safety net -- as would happen under the\nRepublican proposal.\nU.S. Department of Health & Human Services estimates based on the Urban Institute data; numbers may not sum to totals due to rounding."
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