Bush FY 2006 Budget Proposal Might Mean 'Deep Cuts' in Veterans' Health Care

Main Category: Public Health
Article Date: 13 Feb 2005 - 22:00 PDT

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President Bush "faces almost impossible political choices if he is to keep his pledge to reduce spending over the next five years," and unpublished White House budget estimates indicate that the president "cannot reach his budget goals without making deep cuts in programs that have strong political support," such as health care for veterans and scientific research, the... New York Times reports. According to the White House budget estimates, discretionary spending, adjusted for inflation, would decrease by 16%, or $65 billion annually, through 2010. The fiscal year 2006 budget proposal that Bush released this week does not include specific spending reductions for future fiscal years. However, White House budget estimates indicate that to maintain current spending levels through 2010, spending for health care for veterans would have to decrease by 16% after inflation and spending for basic scientific research would have to decrease by 13%. Joshua Bolten, director of the White House Office of Management and Budget, has dismissed such concerns. He said on Thursday, "I don't think it does anybody any good to look at these out-year projections and conclude from them that those programs are going to be cut."

'Biggest Challenge' Political?
According to the Times, Bush would have to "cut many if not most programs other than those involving the military and domestic security," and the "biggest challenge confronting Mr. Bush will involve programs with powerful political supporters and broad emotional appeal to voters." For example, Bush currently faces opposition from veterans over a provision in his budget proposal that would require higher fees for health care (Andrews, New York Times, 2/11). The budget proposal would require about two million higher-income veterans without service-related conditions to pay a $250 annual fee, as well as an $8 increase in copayments for prescription drugs, for FY 2006. Under the proposal, total funds for the Department of Veterans Affairs would increase to $68.2 billion, or by 1%. The budget proposal would eliminate federal funds for a program that provides long-term care for veterans and reduce funds for VA nursing home care by $351 million, which could lead to the elimination of about 5,000 nursing home beds administered by the department (Kaiser Daily Health Policy Report, 2/9). "If Mr. Bush wanted to prevent any real cuts in veterans' health care, he would have to dig through other parts of the domestic budget," but White House budget estimates "already envision cuts after inflation of $13 billion in education, $8 billion in health care, $2.8 billion in criminal justice assistance and $3 billion in housing assistance," the Times reports. "It's nice to say these are only formulaic numbers," Robert Greenstein, executive director of the Center on Budget and Policy Priorities, said, adding, "But the administration is looking to lock in the aggregates by law for five years. Spending in one area has to be offset by cuts in other areas" (New York Times, 2/11).

"Reprinted with permission from kaisernetwork.org kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.