Providers side with governors against Medicaid cutbacks

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The American Association of Homes and Services for the Aging is among the providers taking a stance with governors who are fighting to prevent Medicaid cuts.

AAHSA, along with more than 50 organizations, lent their names to an ad protesting the cuts. The ad, which is expected to appear in today's USA Today, says: "We Agree with our Nation's Governors – Medicaid Cuts Are the Wrong Medicine for Health Care."

Meanwhile, President Bush on Monday addressed governors' concerns during the National Governors Association annual meeting in Washington, D.C., over the proposed cutbacks. He said he would work with them to come to some mutual agreements. "We want Medicaid to work," Bush said. "We also recognize that the system needs to be reformed. And we want to work with you to do so."

Medicaid is one of the central discussion topics of governors during this week's meeting. Many governors of both parties are against the $40 billion in cuts to the state and federal healthcare program. Part of the cuts entails stopping states from using certain accounting techniques to draw more federal funding.