[News From Congressman Bart Stupak] 
For Immediate Release
April 23, 2008
Contact:  Nick Choate
(202) 225-4735

HOUSE VOTES TO BLOCK MEDICAID CUTS
Michigan would stand to lose $3.9 billion over five years if the cuts were implemented

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WASHINGTON – The U.S. House of Representatives voted today to place a one-year moratorium on seven Medicaid regulations proposed by the Bush Administration.  U.S. Congressman Bart Stupak (D-Menominee), a co-sponsor of the legislation, voted not to cut $3.9 billion in Medicaid funding for Michigan over the next five years.  H.R. 5613, the Protecting the Medicaid Safety Net Act of 2008, passed the House in a bipartisan 349 to 62 vote.

“This legislation preserves critical health care programs and services while also fighting fraud and abuse,” Stupak said.

In addition to imposing a one-year moratorium on the seven regulations, H.R. 5613 requires an independent review of the regulations before the moratorium expires next year.  It also provides $25 million annually to the Department of Health and Human Services to fight fraud and abuse in the Medicaid program.

“If implemented, the Bush regulations would reverse long-standing Medicaid policies and eliminate federal payments for critical Medicaid functions,” Stupak said.  “They would jeopardize coverage for millions of seniors and impact state budgets at a time when states are already struggling financially.”

By imposing the moratorium, the bill would protect states, beneficiaries and health care providers from the Medicaid cuts caused by the following seven rules:

  • Restrictions on payment for Medicaid coverage of rehabilitation services.  This proposed rule would 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.  This proposed rule would hurt case management efforts to integrate school-based medical services for children with disabilities, fragment services for children in foster care and roll back federal efforts to transition people out of nursing homes.
  • Elimination of payment for school-based transportation and outreach.  This proposed rule would prohibit all Medicaid reimbursement to schools currently allowed for transporting Medicaid children to and from school.
  • Redefinition of allowable provider taxes used to raise state funding for Medicaid.  This proposed rule would result in states reducing services, cutting provider payments or eliminating coverage.
  • Restrictions on payment for Medicaid hospital outpatient benefits.  This proposed rule would significantly restrict the types of hospital outpatient services, such as dental and vision, that Medicaid can cover, impeding states’ efforts to reduce emergency room use.
  • Elimination of payment for graduate medical education in Medicaid.  This proposed rule would prohibit Medicaid payment for graduate medical education programs that train doctors so they have the experience and skills necessary to meet the unique needs of Medicaid beneficiaries, particularly individuals with disabilities.
  • Restrictions on payments to safety net institutions.  This proposed rule places strict limits on Medicaid payments to hospitals and nursing homes, jeopardizing the critical services these facilities provide.
Stupak’s position and vote is supported by all 50 governors, children’s groups and senior’s groups.  Overall, the bill is supported by more than 2,000 organizations, including the National Governors Association, National Association of Counties, American Hospital Association, AARP, American Academy of Pediatrics and the National Public Health Association.

Despite overwhelming bipartisan support in the House, from the governors and millions of Americans, President Bush has threatened to veto the legislation when it reaches his desk.  H.R. 5613 now awaits consideration in the Senate.
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