Debate over Katrina Medicaid relief continues

Concern over rising federal spending has led to a political show down in Washington which may impact healthcare funding in the future. Last night Congress voted for $500 million in aid for victims of Hurricane Katrina. The development triggered a revolt led by Rep. Jim Nussle (R-Iowa), who said major budget cuts are needed to offset increased spending. Critics say those cuts would probably be aimed at Medicare, Medicaid and other entitlement programs. Meanwhile, the fate of legislation sponsored by Sen. Charles Grassley (R-Iowa), which would extend Medicaid coverage to evacuees from the Gulf states, remains uncertain. On Friday, Grassley accused the Bush administration of working behind the scenes to block the bill.

- see this article from The New York Times