Health Care and the Federal Budget

Yesterday, President Obama submitted his 2011 federal budget proposal to Congress. Included in the budget proposal are some critical investments to health care.

Because of today's tough economic times, more people are enrolling in Medicaid. President Obama's budget proposal allocates $25.5 billion for Medicaid assistance to help states maintain their Medicaid programs as they increase enrollment rates. Community health centers, which currently help millions of uninsured Americans access health care, will receive an infusion of $290 million to continue their work. Additionally, $995 million dollars will be allocated to increase the number of doctors and nurses in rural and underserved areas.

The administration proposed to extend the federal COBRA health insurance premiums that are currently provided to Americans who have been involuntarily terminated. Under the proposed budget, the federal government would subsidize 65% of health care premiums for individuals laid off through December 31, 2010.

Some other key provisions include:

• $110 million for continuing efforts to strengthen health IT policy, coordination, and research activities.
• $286 million for research that compares the effectiveness of different medical options, building on the expansion of this research begun under Recovery Act.
• New Medicare demonstration projects that evaluate reforms to provide higher quality care at lower costs, improve beneficiary education and understanding
• $20 million to fund a new effort in up to 10 of the largest U.S. cities to reduce the rates of morbidity and disability due to chronic disease.
• $10 million to improve workforce capacity of state and local health departments.
• $10 million for the federal employee workplace wellness initiative. This initiative will implement prototype wellness programs in select locations that will be rigorously evaluated for their ability to produce a healthier workforce and lower health care costs.

President Obama and his administration are committed to expanding access to coverage for those without insurance, and to provide security and stability to those who have it.

Texas and the Federal Budget

The President's budget also allocates funds to benefit Texas and Texas families. Some of the key investments for our state include:

• Tax cuts for 8.4 million families.
• $5 billion for schools, students, and teachers.
• $4.2 billion to fix and expand the state’s network of roads and highways, modernize airports, and expand water and sewer infrastructure.
• $2.5 billion in new funding for Pell Grants to help families pay for college.
• $1.5 billion for housing assistance.
• Extend for another year the broadest tax cut in American history – the Making Work Pay Tax Credit – for 8.4 million families in Texas.
• Increase the child care tax break by providing a 35 percent credit for middle-class families earning up to $85,000 a year and at least some additional credit to families earning up to $113,000. Families could claim up to $3,000 in expenses for one child or $6,000 for two children. Many middle-class families with two children will see value of the credit nearly double, from $1,200 to $2,100.
• Expand child care funding for working parents by adding $1.6 billion to the Child Care Development Fund, the largest one-year increase in 20 years, to serve an additional 235,000 children. For Texas, the Budget includes $603.1 million in child care assistance.
• Deploy future TARP funds to assist homeowners threatened with foreclosure and small businesses needing access to affordable credit.

Click here to learn more about the federal budget and its investments in Texas.