Lawmakers came one step closer this week to blocking an estimated $20 billion in Medicaid cuts proposed by the Department of Health and Human Services.
The House Committee on Energy and Commerce Subcommittee on Health approved a bill that would impose a one-year moratorium on seven new Bush Medicaid regulations, effectively killing them under this administration. The cuts are part of Bush's 2008 budget plan, but additional cuts are slated for the next five years.
The subcommittee approved the Protecting the Medicaid Safety Net Act of 2008, H.R. 5613, introduced in March by Committee Chairman John Dingell (D-Mich.) and Rep. Tim Murphy (R-Penn.), with an amendment added this week by Dingell.
In an effort to gain Republican and White House support of the bill, the panel borrowed language from the Medicare, Medicaid and SCHIP Extension Act passed in December. The bill will be considered by the full committee as early as next week. Dingell's amendment would add $25 million a year for federal fraud and abuse investigations of the Medicaid program and expand a Medicaid asset verification program to all states.
"Though the administration issued new Medicaid regulations without conducting a thorough and proper assessment of their effects, it's clear that these rules would harm the most vulnerable among us," Dingell said. "I am heartened by the strong bipartisan support this bill received today, and I look forward to bringing it to the full committee for consideration as soon as possible."
The proposed cuts could will take effect for some providers as early as May 25 without passage of the bill. 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.
"I commend the subcommittee for supporting legislation that protects Medicaid beneficiaries from an onslaught of harmful regulations issued by the Bush administration," said Rep. Frank Pallone (D-N.J.), chairman of the subcommittee on health. "By passing this legislation, we are delaying regulations that undermine the longstanding partnership between the federal and state government that should not be implemented without considerable research on how they will impact millions of vulnerable Americans."
According to a committee statement, Ranking Member Joe Barton (R-Texas) supported the bill, saying he is "reasonably confident" the president would sign the bill, if passed.
The National Governors Association, the National Association of State Medicaid Directors and the American Public Human Services Association have all opposed the HHS rules, as have numerous groups representing beneficiaries and people with disabilities.
According to the Kaiser Family Foundation, the cuts are negligible when compared to the $1.2 trillion Medicaid budget over the next five years, but could have drastic consequences to beneficiaries, particularly those needing rehabilitation services.
The foundation said the new rules could also place an undue burden on states.