Government
Medicaid rules draw opposition
NEWS IN BRIEF — Posted April 7, 2008
Seven Medicaid rules proposed by the Bush administration have attracted a lawsuit from hospital associations and legislation to delay their implementation. The rules seek to reduce federal Medicaid spending by up to $20 billion over five years by limiting or eliminating federal assistance for graduate medical education, juvenile justice, administrative expenses in schools and hospital services.
A bill introduced on March 14 by Rep. John Dingell (D, Mich.), chair of the House Energy & Commerce Committee, would institute a one-year moratorium on the rules. Dingell said the regulations take Medicaid in the wrong direction.
A coalition of hospital associations led by the National Assn. of Public Hospitals and Health Systems filed a lawsuit on March 11 to block one of the rules. The coalition said the regulation -- which would limit federal matching payments for government-owned health care facilities to actual costs -- would lower safety net hospital funding by $5 billion. Centers for Medicare & Medicaid Services officials have said the rules attempt to limit federal Medicaid spending to medically necessary services with a legally defined federal matching requirement.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/04/07/gvbf0407.htm.
