Legislation To Block New Medicaid Rules Shows Congress Not 'Serious About Spending Discipline,' Wall Street Journal Writes

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health
Article Date: 20 May 2008 - 5:00 PDT

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"Congress is currently resisting" new Medicaid regulations that "attempt to rein ... in a Big Con that everyone acknowledges": states "have been goosing their financial arrangements to maximize their federal payout and dump more of their costs onto taxpayers nationwide," the Wall Street Journal writes in an editorial. According to the Journal, "Congress promptly forbade enforcement of the new regulations" and "wants to extend" a moratorium on them "until President Bush leaves office," which would allow states to "revert to their con artistry, knowing they are no longer being watched."

The Journal writes that an "alternative would be for the government to distribute block grants, rather than a set fee for every Medicaid service," which would "amputate Washington from state accounting and insulate taxpayers from these shakedowns." The editorial adds, "States would have an incentive to spend more responsibly and also craft innovative policies without Beltway micromanagement."

The editorial states, "In the short term, Congress could -- but probably won't -- allow the administration to close this case." The Journal writes, "No one really knows how much the state grafters have already grabbed," but according to the Congressional Budget Office, the new rules would save $17.8 billion over five years and $42.2 billion over a decade. The Journal concludes, "We realize this is considered a mere gratuity in Washington, but Medicaid's money laundering is further evidence that Congress isn't serious about spending discipline" (Wall Street Journal, 5/19).

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