Members of the House Committee on Energy and Commerce introduced a bill last week to block an estimated $20 billion in cuts to Medicaid over the next five years due to new regulations imposed under the Bush administration.
The Protecting the Medicaid Safety Net Act of 2008, proposed by committee chairman Rep. John Dingell (D-Mich.) and Tim Murphy (R-Penn.), would impose a one-year moratorium on seven new Bush Medicaid regulations, effectively killing them under this administration. The cuts are part of the president's 2008 budget plan.
The administration does not need Congressional approval to impose the regulations, Dingell said. The moratorium would allow Congress time to consider the consequences of the cuts and make legislative plans to prevent them, he said. The Medicaid funds are currently protected under a December 2007 temporary moratorium on some of the regulations, due to expire before July 2008.
"If the Administration's proposed cuts move forward, those most in need will pay the highest price," Dingell said. "The restrictions the administration is imposing on Medicaid are harmful and will undoubtedly put the health of thousands of our most vulnerable children at unnecessary, indefensible risk."
According to Dingell, the regulations issued by the Department of Health and Human Services "would reverse long-standing Medicaid policies and eliminate federal payments for a variety of critical Medicaid functions."
The rules would make changes to the way Medicaid appeals are filed through HHS and state provider tax laws and would make cuts to:
• public safety net institutions;
• coverage of rehabilitation services for people with disabilities;
• outreach and enrollment in schools;
• specialized medical transportation to schools for children covered by Medicaid;
• graduate medical education payments;
• hospital clinic services;
• and case management services that allow people with disabilities to remain in the community.
According to the Kaiser Family Foundation, the cuts would make an insignificant difference in the $1.2 trillion Medicaid budget over the next five years, but could have drastic consequences to beneficiaries, particularly those needing rehabilitation services. The new rules could also place an undue burden on states.
"The cuts to Medicaid target those who need help the most – children, and the mentally and physically disabled," Murphy said. "By eliminating preventative healthcare programs and assistance, there could be a devastating effect on the long-term healthcare of Medicaid patients. This would only lead to higher costs in the future, and put the health of millions at risk."
Dingell and Murphy said they plan to gain widespread bipartisan support for their bill. The American Hospital Association said it supports the bill, along with the National Governors Association, the National Association of State Medicaid Directors and the American Public Human Services Association. Dingell said a large number of beneficiary groups, particularly those representing persons with disabilities, also support the bill.
President Bush's 2009 budget calls for $200 billion in cuts to Medicare and Medicaid. At a press conference last month, Department of Health and Human Services Secretary Michael Leavitt called the president's proposal "a very complex and large budget, crafted responsibly in a challenging time."
The object of the budget is to protect and strengthen the country and create a healthier, safer and more compassionate America, Leavitt said.