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Government Affairs Home > Washington Highlights > January 24, 2003

CMS Rescinds Medicaid Policy Limiting Coverage for Emergency Care

January 24, 2003 - In a Jan. 22 letter to Senate Finance Committee Chairman Charles Grassley (R-Iowa), Center for Medicare and Medicaid Services (CMS) Administrator Tom Scully announced his intent to rescind a new policy that would have permitted states to limit Medicaid coverage of emergency services. According to the letter, several legislators and hospital groups had warned Scully that while the policy was "well-intentioned," it "could potentially result in some restriction of payment for true emergency care." Announced on Dec. 20, 2002, the policy was intended to support states initiatives that encouraged patients "not to use the emergency room as their doctor's office."

The policy generated strong criticism from House and Senate Democrats. In response, Sens. Bob Graham (D-Fla.) and Edward Kennedy (D-Mass.) introduced an amendment to the FY 2003 omnibus appropriations legislation that would have prevented states from implementing any limits on coverage. The AAMC joined the AHA, National Association of Children's Hospitals, and other hospital associations in signing a letter supporting the Graham/Kennedy amendment. The hospital letter was sent to the entire Senate and warned that the policy could "severely harm access to emergency services for our most vulnerable people-the poor, disabled, and elderly." The letter also criticized CMS for issuing the policy changes "with little rationale provided" and "no prior consultation with the public."

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

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