The (Not So) Hidden Corporate Welfare

Well we all know that the vaunted Medicare Prescription Drug Plan was rigged to give pharmaceutical companies whatever price they wanted, so it isn't too surprising that Retirees Are Paying More for Health Benefits - an average of 25 percent more in fact. And of course, since Medicare has such a great prescription plan, major employers cutting back on their retirees' prescription drug plans. However, what is sliding under the radar is that Medicaid may fall to the budget axe.

Yes folks, in a show of more "compassionate conservatism," the health program for the poor is on the Republican cut list. Bush promised to reduce the deficit while continuing tax cuts. His efforts are aimed at "entitlement" programs. We all know about his plans for Social Security. He is stuck for a while with Medicare (not to mention that the pharmaceuticals are set up like swine at an ever-full trough by the legislation). Now it is Medicaid:

"Republicans are real sincere about cutting the budget, and that makes Medicaid vulnerable," said Rep. George Radanovich, R-Calif., a member of the Energy and Commerce Committee, where Medicaid legislation starts.

...

"The big entitlements, including Medicaid, are on the table," he said.

Rep. Anna Eshoo, D-Calif., also a member of the Energy and Commerce Committee, agreed.

"Medicaid could be on the table next year, including cuts in program services," she said. "The president has already proposed turning the program into a block grant and eliminating the intergovernmental transfer program that is so vital for hospitals serving low-income individuals and families in California. I will oppose this."

If "entitlement programs" are on the chopping block then these programs are also at risk: Medicare, Veterans Administration Funding, Federal employee and military retirement,
Unemployment Compensation, Food Stamps, "Welfare", State Children's Health Insurance Program, School Lunch and Breakfast Programs Special Supplemental Nutrition Program (for Women, Infants, and Children - WIC), Agricultural supports, Child and Adult Care Food Program, Centers and Outside-of-School Programs, Family and Group Day Care Homes Workforce Investment Act, Head Start, Low-Income Home Energy Assistance Program (LIHEAP), Subsidized Housing (House Ways and Means Committee Green Book).

Since we have mandatory K-12 education in the US, that most likely counts as an entitlement program as well.

I'm sure that the arguments will be that the "war on terrorism" is very expensive. In fact, the total costs for Afghanistan and Iraq alone could go over $200 billion next year. The "economic stimulus" of tax cuts, and the "jobless recovery" add to the $7 trillion deficit problem. The difference has to come from somewhere doesn't it? And we certainly can't cut it from "critical" defense programs like the $10 billion a year failed missile defense shield.

[UPDATE: NEW NEWS
12/23/04 AP, Governors Appeal to Bush on Medicaid (Plan to shift Medicaid costs to the states.]