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House passes bill to delay Medicaid funding cuts

By Fred Bazzoli

The House of Representatives on Wednesday voted overwhelmingly to pass a bill intended to delay a series of cuts to the Medicaid program.

The Protecting the Medicaid Safety Net Act of 2008 would extend delays on implementing seven Medicaid regulations that industry groups say would cut billions in funding for Medicaid.

HR 5613 passed by a 349-62 roll call vote. The measure was introduced by Rep. John Dingell (D-Mich.) and has 220 co-sponsors.

The bill delays implementation of the cuts until April 1, 2009.

The size of the vote is significant because the margin appears large enough to override a presidential veto, which is expected to be recommended by the administration.

The bill will be forwarded to the Senate for consideration.

The Senate is considering a companion bill, called the Protecting Economic Recovery in Health Care Act of 2008 (S 2819).

Industry groups are lining up to support the measures. For example, the National Association of Children's Hospitals and Related Institutions (NACHRI) is pushing members to show support for the Senate bill. It estimates that the rules that the Centers for Medicare & Medicaid Services issued last August could reduce federal Medicaid spending by $20 billion during the next five years.

NACHRI's concern is that the rules would limit states in their efforts to enroll uninsured children in the State Children's Health Insurance Program (SCHIP).

On Wednesday, The Premier healthcare alliance sent a letter to Sen. Jay Rockefeller (D-N.Y.) applauding his support of the Senate bill.

"The combined regulations to be implemented this year could impose significant burdens on the states and their community hospitals," the letter said. "Of particular concern to Premier and our member hospitals are regulations pertaining to public providers and those that cut funding for graduate medical education as well as cuts to needed outpatient services, which often include preventive care at children's hospitals."