Congressman Lincoln Davis Votes to Restore Funding for Children's Services April 23, 2008

WASHINGTON, D.C. Today, the House of Representatives passed H.R. 5613, a bill to amend the "U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007" to restore cuts to state children's services programs. Congressman Davis voted in favor of this measure.

Last year, the U.S. Centers for Medicare & Medicaid Services (CMS) introduced a rule change that would increase regulations on how states allocate certain federal funds, in effect eliminating federal support for a number of state healthcare programs. Today's legislation establishes a one year moratorium on this rule, giving states time to adjust to the implementation and lawmakers the opportunity to address the problem legislatively.

"With the costs of healthcare skyrocketing and more Americans struggling to pay their bills, there is no excuse for this Administration making cuts to children's services," said Congressman Davis. "I will continue to work with my colleagues in the House to see this issue addressed."

Specifically, the measure establishes a moratorium on CMS rule changes that include:

• Eliminating payments for some Medicaid recipients, such as children in foster care
• Limiting Medicaid payments to hospitals and nursing homes that service Medicaid patients
• Limit state Medicaid payments to public hospitals
• Barring compensation for state child welfare agencies that provide Medicaid services; and
• Barring the use of Medicaid funds for the transportation of school-age Medicaid patients to and from school, and prohibit the use of Medicaid funds for administrative activities performed by a school employee

The rule, which took effect in March, eliminates federal reimbursement for so-called "targeted case management," a service that includes coordination of procedures for children under the care of the state Department of Children's Services (DCS). DCS estimates that 30,000 children in Tennessee benefit from targeted case management annually. Eliminating federal funds, as CMS has done, risks causing major disruptions in the delivery of services in Tennessee. Moreover, DCS estimates the loss of federal funds may initiate the loss of approximately 160 positions within DCS.

The bill passed by a vote of 349-62.