Senate Forgoes Fourth of July Recess, Budget Negotiations Continue - July 6, 2011

Both houses of Congress are in session this week as the Senate canceled its July 4th recess to continue work on debt reduction negotiations. After the “Biden working group” talks fell apart a few weeks ago, the White House has been leading the negotiations. Although the depths of the cuts expected for the debt reduction legislation remain unclear, news reports hint that the Administration has offered substantial cuts to the Medicare and Medicaid programs in exchange for increases in revenue. Republicans have been resistant to any proposals that included revenue increases and have continued to urge Democrats to find savings in the entitlement programs. Negotiators are seriously considering reductions in the federal share of Medicaid spending, restrictions on provider taxes, cuts in the training of doctors and other cuts to the program as they seek the savings needed to reach a compromise. President Obama is convening a summit with the majority and minority leadership from both houses of Congress on Thursday, July 7. The President has asked that they come ready to compromise and without ultimatums. NAPH will continue to monitor these negotiations as both parties seek common ground ahead of the impending debt ceiling expiration.

Last week, NAPH reported its coordination with the hospital-based Coalition to Protect America’s Healthcare on a nation-wide advertising campaign – commitments have been made to fund those ads through August, urging against drastic cuts to the Medicare and Medicaid programs. NAPH urges its members to reach out to their congressional delegation to discuss the issues that are critical to the safety net. Resources have been made available to members on the NAPH website to help facilitate congressional outreach, particularly around the issues of provider taxes and the federal share of Medicaid spending.

Senate Budget Committee Chairman Kent Conrad (D-N.D.) is expected to meet with the Democratic leadership this week to discuss his FY 2012 budget plan. After the leadership is briefed, Sen. Conrad’s plan will then be available to the public. NAPH will prepare an analysis of his plan once it becomes public.