Senate Fast-Tracks Medicaid Bill That Would Delay New Rules; CMS Defends Rules, Willing To Talk

Main Category: Medicare / Medicaid / SCHIP
Article Date: 28 Apr 2008 - 12:00 PDT

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Senate Majority Leader Harry Reid (D-Nev.) on Thursday granted fast-track status to legislation (HR 5613) that would block for one year seven new Medicaid regulations, the Wall Street Journal reports (Zhang, Wall Street Journal, 4/25). The legislation would delay implementation of the regulations until April 1, 2009. Under the regulations, proposed by the Bush administration, states could not use federal Medicaid funds to help pay for physician training. The regulations also would place new limits on Medicaid reimbursements to hospitals and nursing homes operated by state and local governments and limit coverage of rehabilitation services for individuals with disabilities and mental illnesses. In addition, the bill would provide $25 million annually for efforts to fight Medicaid fraud (Kaiser Daily Health Policy Report, 4/24).

The bill will bypass the Senate Finance Committee and head straight to the Senate floor as early as next week, the Journal reports. The bill passed the House on Wednesday with more than a veto-proof majority. Sen. Charles Schumer (D-N.Y.) said, "These rules are unwise, unvetted and unrealistic," adding, "The Senate is moving closer to joining with the House to make sure these rules never see the light of day." However, some Senate Republicans "are preparing for a fight by circulating a letter to Minority Leader Mitch McConnell (Ky.) to reject" the bill, according to the Journal (Wall Street Journal, 4/25).

Meanwhile, House Democratic leaders also could include language to block the Medicaid regulations in a tentative second economic stimulus package, the AP/Philadelphia Inquirer reports (Taylor, AP/Philadelphia Inquirer, 4/25).

CMS Defends Rules
At a meeting of the National Conference of State Legislatures on Thursday, CMS Acting Administrator Kerry Weems defended the new regulations but said that the administration would be willing to discuss them with lawmakers, CongressDaily reports. Weems also said agency officials are urging senators to vote against the House bill. "If you really are serious about good fiscal policy, you've got to draw the line somewhere," Weems said, adding, "These regulations draw that line." However, Weems said the administration is willing to discuss them "if that looked like a fruitful route" (Johnson, CongressDaily, 4/25).

According to sources on Capitol Hill, the administration would be willing to negotiate the rules on graduate medical education and "intergovernmental transfer" payments, which are "extremely sensitive politically because they in part have funded safety-net programs for poor patients," CQ HealthBeat reports. Weems declined to discuss which regulations the administration would consider changing. A congressional aide said that, if the House bill lacks enough support in the Senate to make it veto-proof, the administration will push for the limited moratorium strategy (Reichard, CQ HealthBeat, 4/24).

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.

© 2008 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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