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555 Dirksen Office Building
Washington, DC 20510
Ph: 202.224.6342
Fax: 202.224.1100
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Raleigh Office:
310 New Bern Avenue
Suite 122
Raleigh, NC 27601
Ph: 919.856.4630
Toll Free: 866.420.6083
Fax: 919.856.4053
Salisbury Office:
225 North Main Street
Suite 304
Salisbury, NC 28144
Ph: 704.633.5011
Toll Free: 866.420.6084
Fax: 704.633.2937
Western Office:
401 North Main Street
Suite 200
Hendersonville, NC 28792
Ph: 828.698.3747
Fax: 828.698.1267
Eastern Office:
306 South Evans Street
Greenville, NC 27835
Ph: 252.329.1093
Fax: 252.329.1097
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Press Releases
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DOLE LAUDS ACTION TO SUSPEND MEDICAID CUTS
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June 27th, 2008 - Washington, D.C. - U.S. Sen. Elizabeth Dole lauded passage of a measure postponing the Bush Administration’s proposed cuts to Medicaid. Dole has been a leader in securing a moratorium on funding cuts that would result in job losses and decreased services at North Carolina hospitals.
“North Carolina’s hospitals depend on this funding to deliver quality health care to patients who need it,” said Dole. “If these cuts were implemented, they would cost North Carolina hospitals hundreds of millions of dollars and jobs. I am pleased we were able to extend this moratorium to protect health care access in North Carolina.”
The federal government reimburses states for a share of the costs of providing health care for low-income and uninsured patients. In 2007, as part of the Bush Administration’s broader effort to cut $4 billion in Medicaid funding, the Centers for Medicare & Medicaid Services (CMS) issued a rule change that would limit payments to safety net health care providers by capping reimbursement payments, redefining eligible public providers and imposing new restrictions on non-federal funding sources. Dole succeeded in getting the moratorium last year, and the legislation that was approved yesterday extends the moratorium until March 2009.
“This legislation is extremely important to funding hospitals in our role as the heart of the State's health care safety net,” said North Carolina Hospital Association President Bill Pully. “We sincerely appreciate Senator Dole's leadership and the entire North Carolina Congressional delegation's bi-partisan support on this issue and for their hospitals.”
According to the North Carolina Hospital Association (NCHA), the proposed Medicaid cuts would have cost North Carolina hospitals over $330 million in 2007. Beyond the direct cost to North Carolina hospitals this rule change would also eliminate the health care safety net for uninsured and low-income patients and potentially force hospitals to pass those costs on to other patients.
In addition, Dole successfully worked to extend the moratorium on cuts to Medicaid Graduate Medical Education (GME) payments. Last year alone, these cuts would have eliminated $80 million for North Carolina teaching hospitals that train physicians and provide critical services, including those to indigent patients.
Background
In early 2007, Dole, along with Sen. Richard Durbin (D-Ill.), led a successful effort to pass a one-year moratorium on the proposed Medicaid hospital policy change. In December 2007, Dole joined Sen. Jeff Bingaman (D-N.M.) in introducing bipartisan legislation that would extend the moratorium for another year. For her leadership on this issue, Dole has received awards from the NCHA and the National Association of Public Hospitals.
The moratorium was included as part of the Supplemental Appropriations Act for the Department of Defense for fiscal years 2008 and 2009, which passed the Senate Thursday night by a vote of 92-6. The bill also suspended Medicaid payment cuts for targeted case management services, rehabilitation services, and school-based transportation and outreach services, and it limits taxes on providers.
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