In Washington...
President Clinton unveiled a 10-year, $110 billion plan to make health insurance coverage more affordable and accessible during his State of the Union address on January 27. The plan would expand Medicaid by covering the parents of children who are currently eligible for Medicaid, giving states the option to cover children through age 20 and extending transitional Medicaid for workers who leave welfare. At least five million Americans are expected to gain coverage under the proposal. It would also streamline the Medicaid eligibility process for all applicants, allow displaced workers over age 55 to buy into Medicare, make COBRA transitional health insurance more affordable through a 25 percent tax credit, and encourage small employers to provide health coverage. The plan includes an additional $50 million for community health centers. In a January address, Senator Edward Kennedy endorsed the Clinton-Gore proposal and said he will be introducing legislation that goes a step further, requiring employers to make health plans available through the workplace.
In its FY 2001 budget proposal, the Clinton Administration calls for a $1 billion increase in NIH funding. The early Clinton support is one more sign that Washington will ignore the tight budget caps enacted in 1997 and use at least a portion of the growing surplus for new spending.
On Beacon Hill...
In his State of the State address on January 20, Governor Cellucci announced that he will allocate $50 million from tobacco settlement funds for targeted relief for hospitals and health care providers who have been adversely affected by cuts in federal reimbursement. Details on the program are expected to be included in the budget he will submit to the legislature in the near future.