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May 2008
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Despite Threat of White House Veto Legislation Passes To Delay Medicaid Regulations
Despite passage in the House, the Bush administration issued a formal veto threat against legislation (HR 5613) that would place a one-year moratorium on seven new Medicaid regulations.
The legislation would delay implementation of the regulations until April 1, 2009. Under the regulations, proposed by the administration, states could not use federal Medicaid funds to help pay for physician training. The regulations also would place new limits on Medicaid reimbursements to hospitals and nursing homes operated by state and local governments and limit coverage of rehabilitation services for individuals with disabilities and mental illnesses. In addition, the bill would provide $25 million annually for efforts to fight Medicaid fraud.
The Bush administration cited reports from the Department of Health and Human Services, Office of Inspector General, and the Government Accountability Office. The say both agencies found states have been inappropriately increasing Medicaid spending to draw down more federal matching funds.
The administration in a statement said, "Blocking the [Centers for Medicare and Medicaid Services] regulations ignores the policy recommendations and investigatory findings of the GAO and the OIG, and will put billions of dollars of federal funds at risk."
In Nevada, state Medicaid director Chuck Duarte, Department of Health Care Financing and Policy, said that the proposed rules would cost the state more than $62 million.
AARP Nevada State Director Carla Sloan said, “While AARP supports smart policies to stop fraud, waste and abuse in Medicaid, the cuts proposed by the administration threaten the integrity of the program, and shift unreasonable costs to the people in Medicaid and the states.”