Update on Congressional Budget Activities and Recess “To Dos” - April 19, 2011

Congress adjourned for its two-week April Recess last week, completing a whirlwind of budget activity and setting the stage for the next phase of deficit reduction negotiations. On Friday, the President signed into law the fiscal year (FY) 2011 continuing resolution, which will fund the federal government through the remainder of the fiscal year, which ends September 30. Included in the FY 2011 funding bill were $38 billion in cuts to programs across the federal government. Cuts of note to safety net providers include: 0.2% across the board spending cut to all non-defense programs, $600 million cut to community health centers, $47 million cut to Children's GME funding, and $7 million cut to poison control centers.

Prior to adjourning, the House also passed Budget Committee Chairman Paul Ryan's (R-WI) FY 2012 budget plan by a vote of 235-193. This budget would eliminate $771 billion in federal Medicaid spending and convert the program into a block grant program. In addition, the plan would repeal critical coverage elements of the Affordable Care Act. The plan would also restructure Medicare by converting it into a premium-assistance program.

The Senate Budget Committee is set to unveil its FY 2012 budget proposal sometime in May. This proposal is expected to emphasize a range of deficit reduction measures give Chairman Kent Conrad's (D-ND) role on the Committee and as a member of the 'Gang of Six' - a group of senators that has been working over the past few months to develop a bipartisan deficit reduction proposal.

It is crucial that you contact your Members of Congress during the April Recess to educate them on the impact of various budget and deficit reduction proposals on safety net health systems and the patients you serve. We urge you to share the message that as leading providers of care to Medicaid beneficiaries, NAPH members recognize the need to reduce health care spending, and we have ideas about how to do so. These concepts involve actually reducing the cost of care, not just shifting costs onto others. The unprecedented level of Medicaid cuts will only damage the ability of safety net providers to care for all patients in their communities. NAPH has put together a one-pager for you to share with your members of Congress as well as talking points to assist you in your conversations.