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FROM: kaisernetwork.orgDaily Reports. > http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=15832 > " Bush To Release FY 2004 Budget Proposal Today; NIH Prepares for SpendingReduction "President Bush on Feb. 3 plans to submit a $2.25 trillion fiscal year 2004 budget proposal to Congress that would provide a 2% increase > in NIH funds, the Washington Post reports. Over the past five years, NIH > eachyear has received between 14% and 15% increases in funds as > part of a plan to double the NIH budget from $13.6 billion in 1998. The > proposed2% increase for FY 2004 would affect tens of thousands of > researchers who depend on NIH grants and over time could "make a difference to > millionsof Americans who are counting on NIH to deliver new > treatments," the Post reports. Under the proposal, which would fund NIH at $27.9 billion, > annual 4% increases in funds for "cost-of-doing-research" promised for current grants would decrease to 1% per year, a move that could > leave NIH "hard pressed to maintain the funding of existing grants" and > force the agency to "cut back sharply" on new grants, the Post reports. In > addition, the number of nonbioterrorism research grants awarded by NIH in 2004 would likely decrease to 9,487 from 9,724 in 2003. > "It will be shocking. The response will be fairy negative," Donald > Poppke, the NIH acting associate director for budget, said. However, > Bush administration officials said that the proposed 2% increase > in NIH funds represents a 4.3% increase in funds for nonbioterrorism > research. > According to the Post, Congress often allocates more funds for NIH > thanthe president requests, but the "pressure to hold spending > growth" may prevent the approval of additional NIH funds this year; Sens. Arlen > Specter (R-Pa.) and Tom Harkin (D-Iowa) have introduced a bill > that would triple the NIH budget for the decade that ends in 2008 (Weiss, > WashingtonPost, 2/3). > > Other Health Care Provisions > > Bush's FY 2004 budget proposal also will likely include a 10-year, > $400billion plan to reform Medicare and provide prescription drug > coveragefor seniors (Reuters/USA Today, 1/3). Although neither > Bush nor the administration has released details about the plan, media reports have said that the plan would establish a prescription drug benefit for > beneficiaries who enroll in a new managed care program. According to > reports, Medicare beneficiaries could remain in the traditional > fee-for-service program, enroll in regional HMOs that offer > prescriptiondrug coverage or enroll in private health plans with > "enhancedfee-for-service benefits" that include prescription drug > coverage (Kaiser Daily Health Policy Report, 1/30). Bush's budget proposal also will > likely include provisions for:HHS: The proposal would provide > funds for Medicare reform, as well as programs to help the uninsured, ensure the privacy of medical records and improve the Temporary Assistance > for Needy Families and related programs (Ghent et al., CongressDaily, > 1/31). HIV/AIDS: The proposal would provide $15 billion to African and Caribbean > nations to combat HIV/AIDS over five years and $16 billion to fight the > spread of HIV/AIDS in the United States for fiscal year 2004.Medicaid: The > proposal would provide states with $12.7 billion over seven years, > whichincludes $3.25 billion in 2004, for their Medicaid > programs. Vaccines: > The proposal would provide $6 billion over the next decade to > develop new vaccines against anthrax, Ebola, plague, botulism and other > bioterrorismagents (Reuters/USA Today, 2/3) The New York Times > reports that Bush's FY 2004 budget proposal has a "strong chance" of passing "largely > intact,"as congressional Republicans have promised to "hew > closely" to the plan. > However, moderate Republicans in the Senate may challenge the > proposal. For example, Sen. Charles Grassley (R-Iowa), chair of the Senate > FinanceCommittee, has criticized Bush's reported plan to provide prescription drug coverage only to Medicare beneficiaries who enroll in managed care plans (Andrews/Firestone, New York Times, > 2/3). ---------------------------------------------------------------------- To sign-off Parkinsn send a message to: mailto:[log in to unmask] In the body of the message put: signoff parkinsn