FOR IMMEDIATE
RELEASE
Contact: Adriana Surfas
Wednesday, April 23, 2008
(202)
225-3661
DeLauro
Welcomes Passage of Legislation to Prevent Cuts to Federal Medicaid Funding
Urges
President Bush Not to Veto
“These
proposed Medicaid cuts are the wrong approach and will only compound economic
problems faced by the American people and the states,” said DeLauro.
“Americans are facing record-breaking gas prices, as well as rising food
prices, health care costs and the effects of a shaky economy. State
budgets, already struggling financially, continue to face greater and greater
strain and these cuts would only worsen the problem.
“I
was pleased to join with my colleagues to introduce this legislation that would
shelve these cuts. We have a moral responsibility to protect the most vulnerable
among us and the Administration’s proposed rule change ignores that
responsibility.
“Although
the President has indicated he would veto this legislation, I would urge him to
rethink this course of action. To allow these cuts to go forward clearly
demonstrates how out-of-touch the Bush Administration is with what American
families are experiencing in this current economic downturn.”
The
bill will also establish an independent review of these regulations prior to the
expiration of the moratorium next year. In addition, it provides $25
million to the Department of Health and Human Services each year, beginning in
fiscal year 2009, to fight fraud and abuse in the Medicaid program.
Specifically, by imposing a moratorium, this bill would protect states,
beneficiaries, and providers from the Medicaid cuts caused by the following
seven rules:
Restrictions
on payment for Medicaid coverage of rehabilitation services (proposed
rule issued August 13, 2007; current moratorium through June 30, 2008).
This proposed rule would severely curtail the ability of people with chronic and
temporary disabilities to receive rehabilitation services now covered under
Medicaid. It would particularly hurt those with developmental
disabilities, mental illness, and people who, without access to rehabilitation
services, could see their health deteriorate. It would also jeopardize the
ability of people with disabilities to live independently in the community
because access to the services that help them stay at home would no longer be
available.
Restrictions
on payment for Medicaid coverage of case management services (interim
final rule issued December 4, 2007, effective March 3, 2009; no current
moratorium). Medicaid’s current case
management benefit is intended to help people with disabilities, chronic
illnesses, or special needs to gain access to the full spectrum of health care
and support services by arranging for and coordinating care. States may
provide case management for adults, but must provide it for children. This
rule would hurt efforts to integrate school-based medical services for children
with disabilities, because states would no longer be able to receive funding for
important care coordination activities. It would fragment services for
children in foster care by prohibiting child welfare agencies from being paid
for providing Medicaid services. It would also roll back federal efforts
to transition people out of nursing homes by limiting the assistance available
to people with disabilities to secure needed services in a community setting.
Elimination
of payment for school-based transportation and outreach (final
rule issued December 28, 2007; current moratorium through June 30, 2008).
Under current practice, schools may be reimbursed by Medicaid for extremely
limited, specialized medical transportation for Medicaid children to get to and
from school. This rule would prohibit all Medicaid funding of this
specialized medical transportation. In addition, under current practice,
schools may be reimbursed for their administrative activities associated with
the Medicaid program, including outreach, assistance with enrollment, and
referring children to Medicaid providers and Medicaid services. The rule
would also prohibit all Medicaid funding for these administrative activities by
schools.
Redefinition
of allowable provider taxes used to raise state funding for Medicaid (final
rule issued February 22, 2008, effective April 22, 2008; no current moratorium).
Under current law, states are allowed to tax providers as a way to help pay for
Medicaid expenses. These taxes are supported by providers because the
taxes are used to improve provider payment rates and improve quality. This
rule significantly redefines “allowable” provider taxes. This dramatic
change would put current, long-standing state programs in jeopardy and
jeopardize state funding for Medicaid programs. This would result in
states reducing services, cutting provider payments, or eliminating coverage.
Restrictions
on payment for Medicaid hospital outpatient benefits (proposed
rule issued September 28, 2007; no current moratorium).
This proposed rule would significantly restrict the types of hospital outpatient
services Medicaid can cover. For example, Medicaid would be prohibited from
covering certain services such as dental and vision services commonly provided
to Medicaid patients through outpatient clinics. The rule would also
restrict the ability of states to cover services in outpatient clinics that are
separate from hospitals – a common way states have served people in
communities and reduced emergency room use.
Elimination
of payment for graduate medical education in Medicaid (proposed
rule issued May 23, 2007; current moratorium through May 25, 2008).
This proposed rule would prohibit Medicaid payment for graduate medical
education programs that train providers so they have the experience and skills
necessary to meet the unique needs of Medicaid beneficiaries, particularly
individuals with disabilities. Eliminating Medicaid funding for graduate
medical education would reduce the number of providers with the skills and
training to care for the special needs of Medicaid beneficiaries.
Restrictions
on payments to safety net institutions (intergovernmental transfers) (final
rule issued May 29, 2007; current moratorium through May 25, 2008).
This rule places strict limits on Medicaid payments to critical safety net
institutions such as hospitals and nursing homes that serve Medicaid
beneficiaries. If these payments are reduced or eliminated, the critical
access to care and services provided by these institutions may be in jeopardy.
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