Government Relations Action Alert

Phone Calls, Faxes & E-mails Needed NOW to all House Members Supporting Medicaid FMAP Increase on Tax Cut Bill

May 19, 2003

THE ISSUE AT HAND

On May 15, 2003, the Senate narrowly approved a 10-year, $350 billion tax cut bill (S.1054/HR.2). While NASW opposes this bill, it does include a critical NASW-supported amendment providing additional funding for state Medicaid programs and state and local fiscal relief.  The Senate voted 95-3 in favor of this $20 billion amendment, proposed by Sen. Susan Collins (R-Maine), that would allocate $10 billion to increase federal matching rates for Medicaid by 2.95 percentage points until Oct. 1, 2004.  The other $10 billion would be evenly divided over two years, to be used by states and localities for health care, social services, public safety, education, job training, transportation and infrastructure, law enforcement, or other "essential government" services.  To help offset the cost of the Medicaid and state and local fiscal relief increases, the Senate increased user fees and closed existing tax breaks. 

The House's $550 billion version of the tax cut bill does not include the Medicaid or state and local fiscal relief amendment. A House-Senate conference committee will begin shortly to resolve the major differences between the two tax bills, negotiations could last several weeks into June.  Medicaid funding increases and state and local fiscal relief, although overwhelmingly supported in the Senate, are strongly opposed by many in the House Republican leadership.

Action Needed

All members of the House, Republicans in particular, must be contacted immediately to hear support for Medicaid funding increases and state and local fiscal relief as an essential component of the final tax bill. Please call, fax, or e-mail your U.S. Representative and ask him or her to contact the House tax bill conferees and the Republican leadership to inform them of his or her support for this vital Senate provision. These contacts are essential over the next week as the conference begins.

A sample letter opposing the bill has been posted on NASW's Congress Web to e-mail or fax to Members of Congress. A sample phone message follows. All Members can be reached through the Capitol switchboard at 202-225-3121. Individual telephone numbers, fax numbers, and e-mail addresses are available through NASW's Congress Web: www.socialworkers.org/advocacy/grassroots/congressweb.asp If you make a phone call, please let us know via e-mail at advocacy@naswdc.org

Sample Phone Message

My name is ________________ from _________________ (city, state). As a constituent, professional social worker, and member of the National Association of Social Workers, I am calling to ask Representative ____________ (last name) to support retention of the $20 billion Senate Medicaid and fiscal relief provision in the final tax cut package (S.1054/HR.2). I would appreciate the Representative’s contacting the House tax bill conferees and their leadership to support Medicaid funding increases and state and local fiscal relief in these negotiations on the tax cut bill. Thank you.

Timing

It is critical for opposition to be heard by Tuesday, June 3, since the tax cut bill is already undergoing conference consideration.

Background

State Medicaid programs serve as an important safety net for Americans in need of health care services by ensuring access to critical health and long term care benefits. Currently, the Medicaid program provides coverage to 47 million Americans. This program covers 20 millionžor one in fouržU.S. children, as well as 8.6 million adults, 4.1 million elderly, and seven million blind and disabled individuals.

Reduced state revenues are placing severe strains on many state budgets and could limit Medicaid at a time when additional coverage and spending is most needed. States are currently facing the most severe budget crisis since World War II. Nearly every one has proposed or enacted cuts to its Medicaid program.

Socials workers strongly support the maintenance of a strong health insurance safety net for vulnerable populations. The Senate has included $20 billion in state fiscal relief as part of its economic stimulus measure in the Jobs and Growth Tax Act of 2003 (S.1054/HR.2). The Senate provision allocates $10 billion to increase federal matching rates for Medicaid by 2.95 percentage points until Oct. 1, 2004. The other $10 billion would be evenly divided over two years to be used by states and localities for health care, social services, public safety, education, job training, transportation and infrastructure, law enforcement, or other "essential government" services.  It is critical that this provision be included in the final version of the legislation.

TAKE ACTION NOW!

THANKS FOR YOUR ADVOCACY!