1.31.2006

Medicaid Strain

President Bush used a dose of Clinton-inspired humor in his State of the Union speech Tuesday night, but New York Democrats weren't laughing at his latest call to rein in spiraling health care costs for seniors and the poor.

In the prime-time address, Bush called on both parties to act now to head off the growing strain of Medicaid, Medicare and Social Security _ government entitlement programs whose costs are expected to balloon in coming decades.

Perhaps seeking to defuse any lingering partisan anger over his failed effort to revamp Social Security last year, he used a family joke to bring up the contentious issue of rising health care costs.

"This year, the first of about 78 million Baby Boomers turn 60, including two of my dad's favorite people _ me and President Clinton. This milestone is more than a personal crisis _ it is a national challenge," Bush said.

The elder Bush and Bill Clinton became a much-discussed political odd couple last year after the pair did charity work together for hurricane and tsunami victims.

Seeking to regain momentum with Congress, Bush said health care was one of several issues _ along with energy independence, education and immigration _ critical to keeping America competitive in a global marketplace.

"Keeping America competitive requires affordable health care," the president said.

At $44.5 billion a year and growing, New York's Medicaid program is the nation's largest, straining both state and county budgets. Any significant changes to Medicare or Medicaid likely would have a bigger impact on the Empire State than any other.



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