House Committee Approves Moratoria
on Medicaid Rules

4/16/2008

Administration Threatens Another
Veto Hurting Kids


WASHINGTON, DC –
Today, amidst Administration threats of a veto, the House Energy and Commerce Committee unanimously approved the Protecting the Medicaid Safety Net Act (H.R. 5613), legislation placing one-year moratorium on seven Medicaid regulations imposed by the Bush administration that would make significant cuts to the program over the next five years. The act was approved with strong bipartisan support, introduced by Representatives John D. Dingell (D-MI) and Tim Murphy (R-PA). The legislation calls for the moratorium to be in effect until March, 2009.

In reaction to the Administration’s veto threats, Bruce Lesley, President of First Focus, a bipartisan children’s advocacy organization, released the following statement:

“Enactment of this legislation is imperative, as it overturns Administration regulations that, if implemented, would actually do serious harm to the health of our nation's children. Since these regulations have been proposed, overwhelming evidence has been brought forth indicating that these regulations are bad for children, particularly those with special needs, as well as states, who stand to lose more than $50 billion in federal payments over the next five years.

In light of the worsening economic situation in this country, a cost-shift to the states will specifically harm our children, as kids needing specialized health services will be faced with paying for it or going without. Moreover, the administration’s rules reduce billions of dollars to our nation's schools, which would be faced with the decision to reduce funding for education and health services or raise state and local taxes to pay for the dramatic reduction in federal support.

Despite the unprecedented opposition to these regulations from state governments to children’s advocates to a bipartisan majority of the Energy and Commerce committee, the Administration has once again indicated that the health and well being of American children is not their priority.”

In March, First Focus released a report on the impact of the regulatory actions on children with special health care needs, finding they would have a disproportionate impact on that vulnerable population. Congressman Dingell later pointed to that report as the evidence that the Administration’s new Medicaid Regulations would weaken health care for children. Moreover, a recent study by the House Committee on Oversight and Government Reform has indicated that the Medicaid regulations would reduce federal payments to states by nearly $50 billion over five years – over three times the impact estimated by Centers for Medicare and Medicaid Services (CMS).



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