” Most of the Medicare savings in the budget would be achieved “by reducing the annual update in federal payments to hospitals, nursing homes, hospices, ambulances and home care agencies.”. HEALTH CARE SLASHED: Bush’s budget will include $170 billion in cuts to Medicare over the next five years and will also cut $1.2 billion from Medicaid next year “and nearly $14 billion over five years.” Most of the Medicare savings in the budget would be achieved “by reducing the annual update in federal payments to hospitals, nursing homes, hospices, ambulances and home care agencies.” The largest savings “by far” come from cutting funding to hospitals, even as hospitals are closing across the country. (Three hundred fewer public hospitals exist today than 15 years ago.) William Dombi, vice president of the National Association for Home Care and Hospice, said that under Bush’s budget, “75 percent to 80 percent of home health agencies would be doomed. They would not be able to meet payroll. They would not be able to operate.” House Speaker Nancy Pelosi (D-CA) said, “The President’s cuts are exactly the wrong medicine when the cost of health care and the number of uninsured continue to rise and families are feeling economically insecure.”
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