Rep. Courtney: Administration's Proposed Medicaid Cuts Would Wreak Havok on Connecticut's Economy, Budget

Press Release

Rep. Courtney: Administration's Proposed Medicaid Cuts Would Wreak Havok on Connecticut's Economy, Budget

Congressman Courtney voted for a one-year moratorium today on the Bush Administration's efforts to cut the Medicaid program. Rep. Courtney voted in favor of H.R. 5613, The "Protecting Medicaid Safety Net Act of 2008," introduced by House Energy and Commerce Chairman John Dingell. The measure passed with a final vote of 349-61.

"State budget projections in Hartford are increasingly ominous and show a continued deterioration. The President's incoherent proposal will only worsen the state's budget, while simultaneously hurting the most vulnerable among us," added Courtney. "The Administration has shown a complete lack of interest in combating runaway gas prices or changing the direction of a war that has put an increasing burden on states' finances, so it is not surprising that the President wants to saddle Connecticut with outrageous new Medicaid costs."

H.R. 5613 places a one-year moratorium on seven regulatory changes issued by Center for Medicare and Medicaid Services. The Congressional Budget Office estimates that these regulations would reduce $20 billion over the next five years in Federal Medicaid funding to states for vital services and programs.

According to a Families USA report, implementation of the seven new Medicaid regulations would result in a loss of $83.5 million in federal funding in Connecticut in the first year of implementation alone and a total of $417 million over 5 years. As a result, Connecticut would lose about $174 million in business activity and approximately 1,500 jobs in the first year of implementation.

The seven White House regulations that would be halted with the temporary moratorium passed today by the House include:

1) Restrictions on payment for Medicaid coverage of rehabilitation services

2) Elimination of payment for specialized medical transportation for children with disabilities in schools and school-based outreach and enrollment

3) Restrictions on payment for targeted case management services that help people with disabilities remain in or rejoin living in their community

4) Redefinition of allowable provider taxes used to raise State funding for Medicaid: the final rule is effective as of April 22, 2008

5) Restrictions on payment for Medicaid hospital outpatient department benefits

6) Restrictions on payments to safety next institutions

7) Elimination of payment for graduate medical education in Medicaid

The House bill must now be approved by the Senate.

"Placing a one year moratorium on the President's proposed cuts to Medicaid would serve the public interest and ensure that the costs of the federal program are not shifted to states," added Courtney.

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