Comparison of Assistance Under SOS Act vs. Bush Administration Block Grant |
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Strengthening Our States |
Bush Administration |
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| Assistance with the cost of low-income Medicare beneficiaries . . . | YES. Provides 100% federal funding for premiums, cost-sharing, and deductibles for low-income Medicare beneficiaries. | NO. Provides no federal help; shifts the bulk of the burden to states by capping federal funding on coverage for elderly and disabled. |
| Direct immediate fiscal relief to prevent pending
reductions in Medicaid coverage . . . |
YES. Provides $30 billion of immediate
fiscal relief for states, and General Accounting Office (GAO) study on making Medicaid
funding more responsive in recessions. |
NO. Funding must be paid back and amount is inadequate; the $3.2 billion in the first year of the Bush proposal is only 4% of projected state shortfalls. States could not get any assistance until after start of state fiscal year and must accept block grant of the bulk of the program. |
| Direct fiscal relief to prevent pending reductions in CHIP | YES. Restores all of the unspent CHIP money that was
returned to the Treasury. |
NO. Restores less than half of the $2.5 billion in
unspent CHIP funds. |
| Other fiscal relief . . . |
YES. Enhanced federal responsibility for low-income Medicare beneficiaries and individuals with disabilities; new funding for legal immigrants, other adults, and parents to provide additional financial strength to state-run systems. Restores money cut from disproportionate share hospital (DSH) program. | NO. |
| Strengthening of state-federal partnership to move
individuals with disabilities into community-living settings . . . |
YES. Permanently increases federal funding for community care for elderly and disabled individuals; makes it easier for states to cover individuals through community care waivers by including savings from other federal programs in cost calculations; creates a new optional Medicaid benefit for coverage of community based attendant and support services with enhanced funding for states that choose to offer this coverage. | NO. Shifts responsibility to states by capping
federal funding for the bulk of the elderly and individuals with disabilities. |
| New program flexibility . . . |
YES. Simplifies program administration by making it easier for states to cover all state residents up to a certain level of poverty; lengthens home and community-based care waivers to five years and gives flexibility to count savings to other federal programs in these waivers. | Unspecified. |
| Incentives to prevent coverage reductions in state "general assistance" health programs for adults . . . | YES. Provides states a new option to cover uninsured individuals now in state-funded programs under Medicaid -- without having to reduce current coverage for others. Also provides fiscal relief to those states currently paying for programs for adults. | NO. States must cut coverage to other families if
they wish to cover adults in Medicaid. |
| Incentives to preserve health insurance coverage and
reduce the number of uninsured . . . |
YES. Preserves the state-federal partnership
guaranteeing federal assistance for every current and future uninsured person the state
covers. |
NO. Eliminates the state-federal financing partnership that has provided incentive to expand coverage to the uninsured for the past 40 years. States will have to fully finance new coverage expansions with state-only money and will no longer be guaranteed any federal assistance for coverage expansions. |