Yahoo! News - Bush to Seek Cuts in Medicaid, Benefits
WASHINGTON - President Bush is readying a new budget that would carve savings from Medicaid and other benefit programs, congressional aides and lobbyists say, but it is unclear if he will be able to push the plan through the Republican-run Congress.

White House officials are not saying what Bush's $2.5 trillion 2006 budget will propose saving from such programs, which comprise the biggest and fastest growing part.

But lobbyists and lawmakers' aides, speaking on condition of anonymity, say he will focus on Medicaid, the health-care program for low-income and disabled people. Medicaid costs are split between Washington and the states.

Many expect him to propose giving states more flexibility in using the $180 billion in federal Medicaid funds each year, but to limit the program's growth on a per-patient basis — in effect forcing the states to find ways to save money.

Bush may also propose trimming doctors' reimbursements or weeding fraud from Medicare, the health insurance system for the elderly and disabled, the aides and lobbyists said.

You heard it here first. The poor are about to get poorer.