IV Post

Washington, DC - Congressman Bob Filner yesterday joined a bipartisan majority in the U.S. House of Representatives to approve legislation that would place a moratorium, until March of 2009, on seven Medicaid regulations imposed by the Bush Administration. The 'Protecting the Medicaid Safety Net Act' (H.R. 5613) was approved by a vote of 349 to 62. H.R. 5613 would stop the pending cuts into Medicaid benefits for children, seniors and disabled Americans.

“There are over 47 million Americans in the United States who do not have health insurance and many more with inadequate policies. At a time like this, I was extremely disappointed when the President tried to limit Medicaid services and outreach even further. The cuts would undermine the Medicaid safety net and imperil critical services for our most vulnerable citizens,” said Congressman Filner. “Our bill protects states, beneficiaries, and providers from the harmful regulatory changes supported by the President. With the economy slowing and the cost of commodities like food and gasoline increasing, it would be unconscionable to allow the President’s ‘rules’ to continue!”

This bipartisan bill is supported by all 50 Governors, both Democratic and Republican, and by more than 2,000 organizations, including the National Governors Association, National Association of Counties, American Hospital Association, National Association of Medicaid Directors, National Association of Mental Health Program Directors, AARP, American Academy of Pediatrics, and National Public Health Association.

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: This rule would severely curtail the ability of people with chronic and temporary disabilities to receive rehabilitation services, and particularly hurt those with developmental disabilities, mental illness, and people who, without access to rehabilitation services, could see their health deteriorate.

* Restrictions on payment for Medicaid coverage of case management services:  Medicaid currently assists people with disabilities, chronic illnesses, or special needs in gaining access to Medicaid. This rule would hurt outreach efforts and Medicaid services.

* Elimination of payment for school-based transportation and outreach: Currently, schools may be reimbursed by Medicaid for extremely limited, specialized medical transportation for Medicaid children to and from school and for administrative activities associated with the Medicaid program, including outreach, assistance with enrollment, and referring children to Medicaid providers and Medicaid services. This rule would prohibit all Medicaid funding of these programs.

* Redefinition of allowable provider taxes used to raise state funding for Medicaid: Under current law, states are allowed to tax providers as a way to help pay for Medicaid expenses. The taxes are used to improve provider payment rates and improve the quality of care provided. This rule significantly redefines “allowable” provider taxes and would put current, long-standing state programs in jeopardy. This would result in states reducing services, cutting provider payments, or eliminating coverage.

* Restrictions on payment for Medicaid hospital outpatient benefits: This rule would significantly restrict the types of hospital outpatient services Medicaid can cover and 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: 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 needs of Medicaid beneficiaries.

* Restrictions on payments to safety net institutions: 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.