04 November 2005

Health-program cuts pass in Senate budget

By TODD ZWILLICH

WASHINGTON, Nov. 3 (UPI) -- The U.S. Senate passed a sweeping budget bill Thursday approving more than $10 billion in cuts to Medicare and Medicaid over the next five years.

The cuts mostly spare beneficiaries of the two huge programs any reductions in benefits or access to healthcare. But Medicaid benefit reductions are still likely to be on the table in a House version of the budget bill expected to be released next week.

The bulk of savings in the bill, which passed 52-47, come from cuts to Medicare subsidies to insurance companies and an increase in Medicaid prescription-drug rebates drug manufacturers must pay to states.

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