Budget Would Cut Medicaid Payments

By ROBERT PEAR (NYT) 928 words
Late Edition - Final , Section A , Page 14 , Column 4

http://query.nytimes.com/gst/abstract.html?res=F30D13F83F590C718CDDAB0894DA404482

National Desk | February 2, 2002, Saturday

ABSTRACT - Pres Bush's budget would rein in growth of Medicaid by reducing payments to public hospitals and cracking down on state efforts to get additional federal money; administration refers to 'closing loopholes' and 'abusive practices,' but critics in Congress and locally say cutbacks, saving estimated $9 billion over five years, would harm Medicaid recipients and aggravate state fiscal problems (M) President Bush's budget would rein in the growth of Medicaid by reducing payments to public hospitals and by cracking down on state efforts to obtain extra federal money to finance health care for the poor, administration officials said today.

The administration says it is ''closing loopholes'' and curbing ''abusive practices'' that states have used to expand Medicaid without putting up all the state money required by federal law.