Engel Votes for Medicaid Safety Net

Press Release

ENGEL VOTES FOR MEDICAID SAFETY NET

The House passed legislation placing a one-year moratorium on seven Administration-imposed Medicaid regulations that would significantly cut the program over the next five years. The bill passed Wednesday by a veto-proof majority of 349-62.

Congressman Eliot Engel co-sponsored the bill, the Protecting the Medicaid Safety Net Act (HR 5613), which included his own legislation to protect public and teaching hospitals from devastating Medicaid cuts scheduled to go into effect May 25th. The bill now goes to the Senate.

Rep. Engel said the legislation will help to protect the health of millions of Medicaid beneficiaries. "The administration-proposed rules would devastate state health budgets and harm the most vulnerable among us," Rep. Engel said. "It's another Bush Administration proposal to make up for the tax cuts for the wealthy by cutting medical aid to the poor."

The bill places a moratorium, until March 2009, on seven Medicaid damaging Administration-imposed rules which would severely damage state budgets at a time when states are already financially struggling.

The Administration rules would restrict payment for Medicaid coverage of rehabilitation services curtailing the ability of people with chronic and temporary disabilities to receive rehabilitation services now covered under Medicaid.

The regulations would also restrict Medicaid coverage of case management services which helps people with disabilities, chronic illnesses, or special needs to gain access to the full spectrum of health care and support services.

The regulations would eliminate payment for school-based transportation and outreach under which schools may be reimbursed for specialized medical transportation for Medicaid children to and from school.

The Administration rules would also redefine taxes used to raise state funding for Medicaid. States are allowed to tax providers to help pay for Medicaid expenses. These taxes are supported by providers because the taxes are used to improve provider payment rates and improve quality.

There proposed restrictions would significantly restrict the types of hospital outpatient services Medicaid can cover, such as dental and vision services commonly provided to Medicaid patients through outpatient clinics.

Wednesday's legislation thwarts the proposed elimination of payment for graduate medical education in Medicaid which would reduce the number of providers with the skills and training to care for the special needs of Medicaid beneficiaries.

Finally the legislation would place a moratorium on the rule strictly limiting Medicaid payments to critical safety net institutions such as hospitals and nursing homes that serve Medicaid beneficiaries.

Rep. Engel said, "The House reacted admirably to the Administration's threat to veto this legislation by passing it with a veto-proof majority. Even Republican realized that this time the Administration went too far.

"I urge the Senate to swiftly adopt this important legislation."

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