House Leaders Reach Compromise On War Funding Package That Includes Delay Of Six Medicaid Rules

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Women's Health / Gynecology;  Public Health
Article Date: 20 Jun 2008 - 5:00 PST

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House Democratic and Republican leaders on Wednesday reached a compromise on a supplemental war funding measure that would delay implementation of six new Bush administration Medicaid regulations, the Wall Street Journal reports (Lueck, Wall Street Journal, 6/19). The House is expected to vote on the measure as early as Thursday (Hulse, New York Times, 6/19).

House Democratic leaders were reluctant to discuss details of the measure because specific details of the compromise were not yet in writing. House Appropriations Committee Chair David Obey (D-Wis.) said, "We need to get it down in writing before we talk about the individual pieces so that there are no slip-ups because we want to put this thing to bed and finish it in the House" on Thursday (Bourge/Sanchez, CongressDaily, 6/19).

The original House version of the war supplemental bill would have delayed implementation of seven new Medicaid regulations, while the compromise measure would delay six of the seven rules, according to CQ Today (Clarke/Higa, CQ Today, 6/18). The rule changes at issue aim to restrict services covered by some states' case management plans; limit Medicaid reimbursement to public hospitals; narrow federal Medicaid reimbursement eligibility for outpatient hospital services; bar federal reimbursement for transportation to school and school-based care for Medicaid-eligible children; restrict the types of "rehabilitative" services covered by federal funding; reduce federal Medicaid reimbursement for students at teaching hospitals; and limit taxes some states charge health providers (Daily Women's Health Policy Report, 5/23).

Outlook, Comments

According to the Journal, the compromise reflects an attempt by House Democrats to reach an agreement with Republicans prior to the July 4 recess and to avoid a "veto fight" with the White House. Bush administration officials were involved in the compromise and have indicated that President Bush will sign the measure.

If the measure passes in the House on Thursday, it then will move to the Senate before going to Bush. Senate aides have said leaders from both parties are reviewing the measure. According to the Journal, it is unclear whether the measure will pass in the Senate. Democratic leaders in the chamber have said they want to pass the measure quickly, but some senators are upset that $10 billion in domestic spending included in a Senate-passed version of the legislation was removed during negotiations (Wall Street Journal, 6/19).

House Majority Leader Steny Hoyer (D-Md.) said, "I think we have an agreement," adding, "If the agreement is carried out, the White House will sign the bill" (Rogers, The Politico, 6/18). House Minority Leader John Boehner (R-Ohio) agreed that the compromise is "acceptable to most Democrats and Republicans and to the White House." Jim Nussle, director of the White House Office of Management and Budget, said the administration "feel[s] very good on all fronts" about the package. "This is a major victory ... I am pleased things came together on these priorities," Nussle said (CongressDaily, 6/19).

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