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Wednesday, February 27, 2008

Governors Strike Back on Bush Attempt to Gut Medicaid, SCHIP

The Bush administration's Center for Medicare and Medicaid Services (CMS) has spent the better part of the past year pushing for changes at the federal level that would make it more difficult for states to administer government healthcare benefits.

One batch of regulations targets federal funding of state Medicaid programs. According to the Kaiser Family Foundation, "Each of the regulations is expected to reduce federal Medicaid spending by directly limiting the level of provider reimbursement, restricting the scope of services eligible for federal match and by limiting states' ability to finance their Medicaid programs."

In August, CMS proclaimed new guidance (a form of administrative government that is not subject to the standard public notice-and-comment period) that undermines the State Children's Health Insurance Program (SCHIP). CMS issued the new policy to reduce the chance state plans would extend SCHIP coverage to individuals who may be eligible for private coverage. Opponents of extending SCHIP eligibility often refer to this as "crowd-out."

CMS would accomplish this goal by prescribing a host of new requirements states would have to meet before receiving federal funding to extend benefits to children in need. Several states have already sued CMS over the guidance.

As BNA news service reports today, governors are angry about the changes. According to the article, Massachusetts governor Deval Patrick (D) said the SCHIP guidance would prevent certain children from being covered even though their parents would be eligible for other government provided healthcare. Washington governor Christine O. Gregorie, "said the SCHIP directive would interfere with its goal of providing health care coverage to all the state's children by 2010."

"Governors from both parties also urged Congress to stop several Medicaid regulations from being implemented, saying they would shift $13 billion in Medicaid spending over five years to the states at a time when states are facing an uncertain economy," according to the article.

The National Governors Association has written to Congress requesting a delay of the Medicaid regulations. Read the letter here.