NEWS RELEASE

Committee on Energy and Commerce
Rep. John D. Dingell, Chairman

Dingell, Murphy Introduce Legislation to Protect Medicaid from Administrative Cuts

Washington, DC - Reps. John D. Dingell (D-MI ), Chairman of the Committee on Energy and Commerce, and Tim Murphy (R-PA), introduced H.R. 5613, the “Protecting the Medicaid Safety Net Act of 2008.” This legislation would place a temporary one-year moratorium on seven Administration-imposed Medicaid regulations that would make significant cuts to the program over the next five years. According to the Congressional Budget Office (CBO), nearly $20 billion in funding is at stake during this five-year period.

“If the Administration’s proposed cuts move forward, those most in need will pay the highest price. The restrictions the Administration is imposing on Medicaid are harmful and will undoubtedly put the health of thousands of our most vulnerable children at unnecessary, indefensible risk,” said Dingell.

During the past year, the U.S. Department of Health and Human Services (HHS) has issued a number of regulations that would reverse long-standing Medicaid policies and eliminate federal payments for a variety of critical Medicaid functions. The rules in question would affect payments to: public safety net institutions; coverage of rehabilitation services for people with disabilities; outreach and enrollment in schools as well as specialized medical transportation to school for children covered by Medicaid; graduate medical education payments; coverage of hospital clinic services; case management services that allow people with disabilities to remain in the community; state provider tax laws; and appeals filed through HHS.

“The cuts to Medicaid target those who need help the most: children, and the mentally and physically disabled,” said Congressman Tim Murphy. “By eliminating preventative healthcare programs and assistance, there could be a devastating effect on the long-term healthcare of Medicaid patients. This would only lead to higher costs in the future, and put the health of millions at risk.”

In December 2007, Congress enacted temporary moratoria on some, but not all, of these regulations. However, all moratoria would expire before July 2008. The legislation introduced today would prevent the implementation of these regulations for one year to give Congress time to better evaluate and assess their effects.

Reps. Dingell and Murphy will be working to garner broad bipartisan support from their colleagues in the U.S. House of Representatives. The National Governors Association, the National Association of State Medicaid Directors, and the American Public Human Services Association have all written bipartisan letters to HHS in opposition to the regulations. In addition, numerous groups representing beneficiaries, particularly people with disabilities, have also publicly opposed these regulations.

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