Regs Battle Home

Medicaid: Regulations Battle

Top Issues

In 2007, the Administration issued a series of regulations that cut Medicaid by approximately $12 billion over the next five years. Advocates across the country, joined by governors, state policy officials, and members of Congress, have voiced serious concerns about the effects that these regulations will have on Medicaid beneficiaries. This page provides resources on the regulations and the effort to prevent their implementation.

Update: Good news! In late June, Congress passed legislation (H.R. 2642) that included moratoria on six of the seven Medicaid regulations. The President signed this legislation, which stalls implementation until April 1, 2009. The one regulation that was not included in the legislation relates to outpatient hospital services.

Resources from Families USA

Bad Medicine: The President's Medicaid Regulations Will Weaken State Economies The Bush Administration issued seven new Medicaid regulations in 2007 that together will strip an estimated $50 billion in federal funds from states over the next five years. These state-specific reports quantify the impact that these changes will have on state economies. (April 2008)

Comments on Interim Final Rule Regarding Medicaid Case Management Services Comments (January 2008)

Legislation

The Supplemental Appropriations Act of 2008 (H.R. 2642) was passed by Congress and signed by the President in late June. It places moratoria on six of the seven regulations until April 1, 2009.

Protecting the Medicaid Safety net Act of 2008 (H.R. 5613, April 2008): The House passed this bill by a vote of 349-62 on April 23, 2008. The bill would place moratoria on all seven Medicaid regulations until April 1, 2009. The Senate is working to pass a similar bill, although the President has threatened to veto any bill that places moratoria on all seven regulations.

In the Senate, Senators Rockefeller, Snowe, and Kennedy introduced the Economic Recovery in Health Care Act of 2008 (S. 2819, April 2008), which would place moratoria on all seven regulations, as well as the CHIP crowd-out directive, and it would provide fiscal relief to the states by temporarily increasing the federal Medicaid matching rate (the FMAP). No votes have been held on this bill.

Other Resources

Hospital Emergency Surge Capacity: Not Ready for the "Predictable Surprise" examines the impact that the Administration’s Medicaid regulations will have on hospital emergency room capacity in seven major U.S. cities. (U.S. House of Representatives, Oversight & Government Reform Committee, May 2008)

Hospitals File Lawsuit against Federal Government to Stop Medicaid Cuts A coalition of four national hospital associations filed a federal lawsuit against the Administration in response to the regulations, particularly those affecting public hospitals. (March 11, 2008)

The Administration’s Medicaid Regulations, State-by-State Impacts (U.S. House of Representatives, Oversight & Government Reform Committee, March 2008)

Administration's Medicaid Regulations Will Weaken Coverage, Harm States, and Strain Health Care System (Center on Budget & Policy Priorities, February 2008)

Medicaid: Overview and Impact of New Regulations (Kaiser Family Foundation, January 2008)

Summary of Proposed Medicaid Regulations (National Association of State Medicaid Directors, January 2008)