Iowa Citizen Action Network

Health Care For All


Open Letter to Senator Grassley on Medicaid Cuts

Open Letter to Senator Grassley on Medicaid Cuts

April 11, 2005

Dear Senator Grassley:

The undersigned organizations are writing to voice our opposition to the Medicaid cuts in both the House and President’s proposed Fiscal Year 2006 budgets. These cuts, which amount to at least $45 billion over ten years, would cause tremendous harm to Iowa. As Congress wrestles with its 2006 budget, we urge you to oppose these cuts, and any caps on federal Medicaid spending.

In Iowa Medicaid provides coverage to over 300,000 people including seniors, children, and people with disabilities. Medicaid funds support public hospitals, community health centers, nursing homes, home and community-based care providers and the physicians and nurses who provide health care to vulnerable Americans. Medicaid fills in the gaps in Medicare coverage for seniors, paying for nearly half of all long-term care services and provides people with disabilities the services and support they need. And it gives children access to critical preventive and primary health care services. Any cuts in this critical program will impair the benefits these vulnerable Iowans receive and diminish the program's ability to meet the growing health care needs of these Iowans.

Health care costs will not disappear just because federal Medicaid funding is reduced. These cuts amount not to a savings, but to a shifting of costs from the federal government to our state. These federal cuts to Medicaid would add almost $390 million over 10 years to our already overburdened state budget. In 2010 alone, Iowa will lose more than $38 million in Medicaid funds, which would be enough to provide coverage to more than 14,000 children or 2,600 seniors that year.

Iowa is already struggling to maintain its share of Medicaid funding. Increasing this burden so dramatically will have dire consequences for the entire state. A cost shift from the federal government will result in either state tax increases and/or cuts in critical state services including health and education. Reducing federal funding in this way would move policy in precisely the wrong direction. States need reliable and consistent federal Medicaid funding to sustain their Medicaid programs.

We are strongly opposed to changes such as a cap in federal funding that would reduce federal support for Medicaid. This program has proven highly successful in responding in difficult economic times because of the program’s guarantee of coverage to people who are eligible as well as its guaranteed financing structure. In the most recent recession, millions of Americans who otherwise would have been without health insurance had coverage thanks to Medicaid.

We ask that you use your position in the conference committee to oppose efforts to cut or cap Medicaid in the FY 2006 budget so that it may continue to meet the vital health care needs of the most vulnerable Americans.

Sincerely,

AFSCME, Iowa Council 61
ASK Resource Center
Catholic Charities, Diocese of Sioux City
Child and Family Policy Center
Family Voices
Food Bank of Iowa
Iowa Association for Home Care
Iowa Citizen Action Network
Iowa Citizens for Community Improvement
Iowa Coalition Against Domestic Violence
Iowa Coalition for Housing and the Homeless
Iowa Conference of the United Methodist Church
Iowa Farmers Union
Iowa Federation of Labor, AFL-CIO
Iowa Governor's Developmental Disabilities Council
Iowa for Health Care
National Association of Social Workers, Iowa Chapter
National Catholic Rural Life Conference
National Multiple Sclerosis Society, Iowa Chapter
South Central Iowa Federation of Labor
Visiting Nurse Services

Matt Russell serves as a contact for this sign on letter from the above Iowa organizations

Matt Russell, Organizer
Iowa Citizen Action Network
3520 Beaver Ave., Suite D
Des Moines, IA 50310
515-277-5077 ext. 15
MRussell@IowaCAN.org
www.iowacan.org


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