President Bush will propose spending $140 bn over the next decade to provide health insurance to 12 million to 14 million Americans who don’t have it. This announcement comes on the wake of Bush starting his second term.
Health and Human Services Secretary Michael Leavitt said that Bush's plan would include $10 billion in additional funding over 10 years to cover more children through Medicaid and the State Children's Health Insurance Program.
The plan also renews earlier Bush proposals, including tax incentives to help poor people buy private coverage; association health plans, which allow small businesses to band together to purchase cheaper employee coverage; and wider use of tax-favored health savings accounts.
The proposals offer the clearest roadmap yet for the Bush administration's plans to change Medicaid and extend health insurance to more of the estimated 45 million Americans who don't have it. That number increased by 5 million during Bush's first term, according to government statistics.
Medicaid is a state-federal partnership. Ohio pays roughly 40 percent and the federal government pays the rest. However, states worry that they may feel more of a financial crunch as Leavitt promised a crackdown on wasteful spending that he expects will save nearly $60 billion over the next 10 years. That includes saving $40 billion by eliminating certain loopholes and accounting practices that states use to obtain federal match money.
Details on those choices will come next week when Gov. Bob Taft announces his budget. The Bush budget, including federal Medicaid spending, will be released Monday.
