Democrats Pressure HHS to
Abandon "Pre-Approval" of State Medicaid Budgets
April 2, 2004 - Nine House and Senate Democrats sent
a March 29 letter to HHS Secretary Tommy Thompson urging him
to "rethink and not republish" a Jan. 7 Federal
Register [69 FR 922] notice that would initiate
changes in the way states receive Medicaid funding. The notice
had outlined a federal pre-approval process for state Medicaid
budgets.
The letter was signed by Sen. Edward
Kennedy (D-Mass.), Sen. Max Baucus (D-Mont.), Rep. John Dingell
(D-Mich.) and Rep. Charles Rangel (D-N.Y.), the Ranking Members
of the Senate Health, Education, Labor and Pensions Committee,
Senate Finance Committee, House Committee on Energy and Commerce,
and House Ways and Means Committee, respectively. Ranking
Health Subcommittee Members Sen. John Rockefeller (D-W.V.),
Rep. Sherrod Brown (D-Ohio), and Rep. Pete Stark (D-Calif.)
also signed the letter, as did Sen. Jeff Bingaman (D-N.M.)
and Rep. Henry Waxman (D-Calif.).
Expressing concern about "the very substance of the
CMS proposal," the letter recommends that Secretary Thompson
"table the proposal altogether." According to the
letter, the new process would have "a dampening effect
on states' willingness to provide health coverage under the
Medicaid program." It would also "ensnare"
state programs in "redundant bureaucratic tasks"
and "divert staff attention away from providing health
benefits." Additionally, the letter argues that CMS "appears
to be outside of its legal bounds in making such a change
to the fundamental nature of the Medicaid program." It
also expresses concern that CMS was attempting to "strangle
the states with bureaucratic requirements and denial of federal
funds and to coerce states into accepting capped federal payments
in exchange for regulatory relief."
Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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