WASHINGTON--The Senate Budget Committee approved a version of President Bush's FY 2007 budget Thursday without Medicare and Medicaid cuts.

The administration's budget proposal calls for a number of Medicare reductions--including a 13-month cap on Medicare oxygen equipment rentals (see HomeCare Monday, Feb. 13)--estimated to save the health care program $2.5 billion in 2007 and $35.9 billion over five years.

But in the Senate committee's version, Medicare would receive $382 billion in 2007, a $55 billion increase over its funding this year. The measure now moves to the full Senate, where debate could begin as early as today.

Although some lawmakers are hesitant to cut Medicare in an election year, there is pressure to trim spending for entitlement programs to help reduce the nation's deficit.

Senate Budget Committee Chairman Judd Gregg, R-N.H., said that passing the Senate version will be a challenge. Democrats have blasted the plan and, according to press reports, it isn't faring much better with some Republicans. "I'm not going in with the votes, I can tell you that much," Gregg told The Associated Press. "There's a high level of angst and indecision out there."

Before the committee vote last week, the American Association for Homecare delivered letters to both Senate and House budget committee members expressing opposition to the 13-month cap proposed in Bush's budget and the 36-month oxygen cap in the Deficit Reduction Act. And, according to the association, Sen. Michael Crapo, R-Idaho, led an effort to prevent home oxygen from being a target in the Senate bill. "As chair of the Congressional COPD Caucus, Sen. Crapo understands the importance of medical oxygen therapy to millions of Americans who suffer from respiratory disease," said Michael Reinemer, the association's vice president for communications and policy.

In light of the current and proposed cuts, AAHomecare is conducting a survey to quantify the costs associated with provision of medical oxygen, as well as other overhead costs such as compliance with state and federal regulations. The deadline for submitting the survey has been extended to Friday. To receive a copy, contact Ashley Ridlon at ashleyr@aahomecare.org or (703) 535-1894.