House Hearing To Consider More Federal Funds For State Medicaid Programs As Part Of Second Economic Stimulus Package

Main Category: Medicare / Medicaid / SCHIP
Article Date: 23 Jul 2008 - 11:00 PDT

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The House Energy and Commerce Health Subcommittee on Tuesday plans to hold a hearing that "might turn up the heat on congressional leaders to include Medicaid relief for states in a second economic stimulus package," CongressDaily reports. According to an advisory sent on Monday by committee Democrats, the hearing will examine the effects of the current economic conditions on state Medicaid programs and whether additional federal funds would help.

Subcommittee Chair Frank Pallone (D-N.J.) and committee Chair John Dingell (D-Mich.) in February proposed a bill (HR 5268) that would increase temporarily the federal medical assistance percentage states receive for Medicaid by almost three points, and Pallone hopes to include the legislation in the second stimulus package. Pallone spokesperson Andrew Souvall said, "Congressman Pallone strongly supports including FMAP language in the second economic stimulus," adding, "He has been pushing for its inclusion." A spokesperson for House Speaker Nancy Pelosi (D-Calif.) said that the second stimulus package could include additional federal funds for state Medicaid programs.

Subcommittee ranking member Nathan Deal (R-Ga.) has not taken a position on whether the second stimulus package should include additional federal funds for state Medicaid programs but has concerns about the cost, according to Deal spokesperson Chris Riley. In addition, the Republican Study Committee on Monday released a policy brief in opposition to a temporary increase in FMAP. The brief stated, "A second 'temporary' increase would only provide additional incentive for states to expand their Medicaid entitlement spending, knowing that the federal government will provide additional funding to make up their own budgetary shortfalls" (Edney, CongressDaily, 7/22).

Broadcast Coverage
American Public Media's "Marketplace Morning Report" on Tuesday reported on the possibility that the second stimulus package could include additional federal funds for state Medicaid programs. The segment includes comments from Stan Dorn of the Urban Institute and New Jersey Department of Health Commissioner Heather Howard (Henn, "Marketplace Morning Report," American Public Media, 7/22).

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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