WASHINGTON, Feb. 8, 2006
Bush Trims Medicare, Medicaid Spending
President Say Congress Must Make Bigger Cuts As Baby Boomers Retire
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President Bush is surrounded by members of Congress as he prepares to sign the Deficit Reduction Act of 2005 in the East Room of the White House, Wednesday, Feb. 8, 2006. (AP)
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If approved, the two proposals would save a combined $3.4 billion over the next decade, according to administration estimates.
Based on early reaction, or lack of it, prospects for congressional passage seemed remote.
Democrats hastened to criticize the proposals on Tuesday and continued their attack into a second day.
The bill he signed is a leftover measure from his 2005 agenda. The measure aims to trim $39 billion out the of budget over five years, partly through small cuts to Medicaid, Medicare and student loan subsidies.
The bill also:
The $39 billion in cuts are generally small — a 0.4 percent cut in total Medicaid money and 0.3 percent cut from Medicare over five years — compared with deficits expected to total $1.3 trillion or more through 2010. But Bush said it will save an average of about $300 per taxpayer over the five years.
Democrats said the measure was an assault on college students and the elderly and disabled who rely on Medicaid to pay for their health care. They said the bill, which was written in private, was evidence of the undue influence of corporate interests such as insurance companies and drug manufacturers.
Sen. Edward Kennedy, D-Mass., said in a statement that Bush was trying to put "a high gloss on his harsh budget." He said if Congress approved the plan, it would make life harder for widows, orphans, the disabled and families trying to make ends meet, while making the rich more wealthy.
"Budgets are moral documents and this one is clearly unfair," Kennedy said.
In his State of the Union address last week, Bush proposed a bipartisan commission to examine the impact of baby boomer retirements on Medicare, Medicaid and Social Security. He is asking the commission to recommend long-term solutions to control costs and keep the programs running.
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