Cutback Imperil Health Coverage For State's Poor

By Robin Toner and Robert Pear (NYT)

April 28, 2003

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ABSTRACT - Millions of low-income Americans face loss of health insurance or sharp cuts in benefits under proposals now moving through state legislatures around country; state officials, confronting third straight year of fiscal crisis, say they have no choice but to rein in Medicaid, fast-growing program that provides health insurance for 50 million people; many state officials are pleading for federal help as they face array of painful trade-offs, often pitting needs of impoverished elderly people for prescription drugs and long-term care against those of low-income families seeking basic health coverage; almost every state has made or is planning cuts in benefits, eligibility or payments to health care providers; moderate Republicans on Capitol Hill have joined Democrats in seeking legislation that would provide additional federal aid for Medicaid, which is financed by federal government and states; Bush administration opposes such legislation, saying Medicaid is unsustainable in its current form and should be revamped to give states expanded power to run it; photo; maps (L) Millions of low-income Americans face the loss of health insurance or sharp cuts in benefits, like coverage for prescription drugs and dental care, under proposals now moving through state legislatures around the country.

State officials and health policy experts say the cuts will increase the number of uninsured, threaten recent progress in covering children and impose severe strains on hospitals, doctors and nursing homes.