R-8987
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f:atty\muni\laws\jl\medicare
City Council Meeting 1-9-96
Santa Monica, California
RESOLUTION NUMBER 8987
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA URGING CONGRESS TO
POSTPONE ACTION ON CUTS OR CHANGES IN MEDICARE
AND MEDICAID UNTIL A CAREFULLY DEVELOPED
PLAN IS IN PLACE
WHEREAS, Congress has resolved to balance the federal budget
within seven (7) years by making deep cuts in entitlements and
human services, with almost half of the total reductions in the
deficit over the next seven (7) years coming from Medicare ($270
billion) and Medicaid {$163 billion}; and
WHEREAS, Medicare provides coverage for 36 million people, the
majority over 65 years of age; and the factors contributing to the
growth of Medicare are difficult or impossible to control,
including population aging, advances in medical technology,
increasing use of care, and the price of inflation, so that the
proposed cuts in Medicare will require reducing payments to doctors
and hospitals, and also will necessitate higher out-of-pocket
payments
by
recipients,
resulting
in hardship to many
beneficiaries; and
WHEREAS, Medicaid is the safety net which makes heal thcare
possible for 32 million low-income persons of all ages; and about
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35% of Medicaid spending goes for long-term care, including more
than half of the nation's nursing home costs; and Medicaid is to be
turned into block grants for the states, in amounts too small to
support the present levels of service, and eliminating federal
performance standards; and
WHEREAS, as part of the Medicaid revision proposal, all legal
immigrants will be denied healthcare, thereby creating a drastic
problem for local governments and hospital emergency rooms; and
WHEREAS, patients dependent on Medicare and Medicaid may
experience unnecessary suffering, worsening illness, or even
premature death if, because of inadequate payments to providers,
they are not treated by hospitals or doctors, or receive
insufficient care; and
WHEREAS, the Medicare and Medicaid programs account for almost
one third of all spending on healthcare, so these cuts may have a
far-reaching effect on the medical system; doctors and hospitals
will need to shift more costs to private patients, causing health
insurance rates to rise, with resulting higher health insurance
costs for business; and some hospitals now dependent on government
payments may have to close; and managed care by HMO's on a large
scale may not actually result in savings; and
WHEREAS, the only part of the Medicare System facing possible
insolvency is the Hospital Insurance Trust Fund, and this Fund has
sufficient reserves to pay benefits for approximately seven (7)
years, and it is not necessary to make hasty decisions or drastic
cuts now to "save Medicare,"
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Monica urges
Congress to postpone action on cuts or changes in Medicare and
Medicaid until a carefully developed plan is in place, which will
provide for changes and improvements which are based on a 30 year
experience with Medicare and Medicaid input from beneficiaries and
qualified public health experts. The City council urges Congress
to create this plan separate and apart from the deficit reduction
process.
SECTION 2. The City Council of the City of Santa Monica urges
Congress to begin work on a long-term plan to guarantee the future
of Social security, Medicare and Medicaid so that these programs
will be available in the years to come when they are needed by
today's children.
SECTION 3. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM
on
MARSHA JO
city Atto
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Adopted and approved thIS 9th of January, 1996
gp ~J-,=>
Mayor
I hereby certIfy that the foregomg ResolutlOn 8987 (CCS) was duly adopted at a meetmg
of the CIty CouncIl held on the 9th of January, 1996 by the followmg vote
Ayes
CouncIl members
Abdo, Ebner, Genser, Holbrook, Rosenstem
Noes
CouncIl members
None
Abstam
Couned members
None
Absent
CouncIl members
Greenberg, O'Connor
ATTEST
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CIty Clerk
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