WASHINGTON – Lawmakers came one step closer in April to blocking an estimated $20 billion in Medicaid cuts proposed by the Department of Health and Human Services.
By a unanimous vote, the House Committee on Energy and Commerce on April 16 approved legislation to place a temporary one-year moratorium on seven administration-imposed Medicaid regulations that would cause significant cuts to the program over the next five years.
The “Protecting the Medicaid Safety Net Act of 2008” (H.R. 5613), introduced in March by Committee Chairman John Dingell (D-Mich.) and Tim Murphy (R-Penn.) would also add $25 million a year for federal fraud and abuse investigations of the Medicaid program and expand a Medicaid asset verification program to all 50 states.
Dingell said the HHS rules could harm "the most vulnerable Americans" – the disabled and poor. "Though it’s no surprise that HHS has expressed opposition to H.R. 5613, I encourage administration leaders to take a careful look at what this legislation will accomplish,” he said. “There is good reason this bill has received broad, bipartisan, unanimous support.”
The proposed cuts could take effect for some providers as early as May 25 if the bill doesn't pass.
The Safety Net Act would prevent Medicaid cuts to public safety net institutions, rehabilitation services for the disabled, outreach and enrollment in schools, specialized medical transportation to school for children covered by Medicaid, graduate medical education payments, coverage of hospital clinic services and case management services that allow the disabled to remain in the community.
The National Governors Association, the National Association of State Medicaid Directors and the American Public Human Services Association have all formally opposed the HHS rules, in addition to numerous groups representing beneficiaries and people with disabilities.
Sen. Charles Grassley (R-Iowa) opposes the bill, though he said the new regulations it strives to block aren't perfect.
"I have issues with some of them I’d like to see addressed," he said. "However, the regulations do address areas where there are real problems in Medicaid."
Grassley said Medicaid has a "checkered history of financial challenges" with "states abusively pushing the limits of what should be allowed to maximize federal dollars sent to them."
The bill will now have to face a full vote by Congress in order to pass.