Health Group Letter on Medicaid
Hearing
Similar letter sent to House Commerce and Senate Finance
Committee Leadership
March 22, 2002
The Honorable W. J. Tauzin
Chairman
Committee on Energy and Commerce
2125 Rayburn House Office Bldg.
Washington, D.C. 20515
Dear Chairmen Tauzin:
The undersigned organizations, representing a wide spectrum
of health organizations serving Medicaid beneficiaries, respectfully
request that Congress conduct hearings to review the current
state of the Medicaid program.
In 2000, Medicaid provided health coverage for more than
44 million Americans-22.6 million children, 9.2 million adults
in low-income families, and 12 million elderly and disabled.
The primary means by which low-income individuals access essential
healthcare services, Medicaid is a federal-state partnership
that requires attention and oversight at both levels of government.
This is particularly true today in light of economic realities
and impending policy changes.
Fiscal conditions in the states have deteriorated sharply.
Last year, 44 states reported revenues far below forecasted
levels. This year, in part as a result of states meeting their
obligation to cover the increasing number of uninsured resulting
from the recession, spending is expected to exceed budgeted
allotments, exerting greater pressure on Medicaid programs,
which account for a significant proportion of state budgets.
Multi-source fiscal pressure is already descending on the
states, negatively impacting the availability of adequate
funding, the brunt of which Medicaid programs will bare.
The federal matching rate for 29 state Medicaid programs
has been reduced this year based on data gathered two-to-four
years ago, when state economies were strong. Our nation's
health providers, especially those that serve the Medicaid
population, are concerned that economic pressure at the state
level, coupled with inadequate federal assistance, will impinge
upon the ability of America's poor to access vital care.
The organizations signing this letter have identified at
least four important issues that warrant Congressional review.
These include:
- initiatives aimed at temporarily enhancing the Federal
Medical Assistance Percentage (FMAP);
- reviewing inconsistent oversight of and public participation
in the process to develop and review state Medicaid waivers
under the Health Insurance Flexibility and Accountability
(HIFA) initiative;
- cuts in Medicaid Disproportionate Share (DSH) payments
scheduled for October 1; and
- the Medicaid upper payment limit (UPL).
We appreciate your attention to the federal responsibility
for Medicaid and believe strongly that hearings are necessary
to explore and address, at a minimum, the issues identified
above. We commit to assisting you in your oversight efforts.
Sincerely,
American College of Obstetricians and Gynecologists
American College of Osteopathic Pediatricians
American Dental Association
American Health Care Association
American Osteopathic Association
Association of America Medical Colleges
Catholic Health Association
Federation of American Hospitals
National Association of Children's Hospitals
National Association of Public Hospitals and Health Systems
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