Senate panel backs Medicare, Medicaid cuts

By TODD ZWILLICH

WASHINGTON, Oct. 26 (UPI) -- Senate Finance Committee members passed a spending-cut package Tuesday evening, dropping just over $10 billion from the Medicare and Medicaid programs over the next five years.

The move is part of an overall Republican effort to cut $35 billion from the federal budget. The bill passed the committee over the objections of all nine of its Democrats, who opposed what they said was an inadequate effort to send health aid to victims of Hurricane Katrina.

The vote was the product of months of negotiations among committee Republicans, who struggled to find acceptable ways to cut billions from Medicaid, the health insurance program for the poor. Several moderates had opposed provisions that would increase recipients' out-of-pocket costs or cut benefits.