Raleigh News & Observer Examines Possible Effects Of Medicaid Rule Changes

Main Category: Medicare / Medicaid / SCHIP
Article Date: 12 Mar 2008 - 11:00 PDT

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The Raleigh News & Observer on Sunday examined how "hospital administrators and county health officials nationwide are worried" about proposed Medicaid rule changes (Barrett, Raleigh News & Observer, 3/9). The changes include provisions that would prohibit states from using federal Medicaid funds to help pay for physician training, place new limits on Medicaid payments to hospitals and nursing homes operated by state and local governments, and limit coverage of rehabilitation services for people with disabilities, including those with mental illnesses (Kaiser Daily Health Policy Report, 3/3).

Lynne Fagnani, senior vice president for the National Association of Public Hospitals and Health Systems, said some hospitals have warned of clinic closings, longer emergency department wait times and fewer hospital beds as a result of the changes. According to the News & Observer, the changes also could result in a loss of hospital jobs, and some hospital officials say the changes could affect access to health care in rural areas. Hospitals are particularly concerned about a provision that would redefine a "public" hospital and significantly reduce reimbursements to the state for treating many uninsured patients, the News & Observer reports.

State senators are urging Congress to prevent the rules from taking effect. Some lawmakers are working to pass legislation that would extend a moratorium on some of the rule changes. However, supporters of the measure say that President Bush would veto any free-standing bill and that it must be attached to "must-sign" legislation, such as the supplemental war spending bill, according to the News & Observer.

CMS officials say the rule changes are needed to stop wasteful spending in the program and to halt the expansion of Medicaid coverage to services that the Bush administration believes are not within the scope of the program (Raleigh News & Observer, 3/9).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.