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Tuesday, July 01, 2008

Regulatory Attacks on Medicaid Halted

Yesterday, six controversial rules that would have reduced federal funding for Medicaid programs were put on hold until at least April 2009. Congress included moratoria on the rules as a provision in the war supplemental bill which President Bush signed into law. (H.R. 2642; see section 7001 for the moratoria.)

The Bush administration had finalized, or was preparing to finalize, the regulations in an effort to cut federal funding for a variety of Medicaid programs administered by the states. The regulations would have cut funding for services that help those with mental illness and intellectual disabilities and for children in foster care, among other services.

Bush had threatened to veto a stand-alone moratoria bill. Fortunately for states and Medicaid beneficiaries, Congress was able to attach the provision to the war supplemental. Regardless, the regulations are so unpopular among congressmen both houses of Congress approved the provision with veto-proof margins.

Passage of the bill means, hopefully, the Bush administration will not be able to monkey around with Medicaid for the remainder of its tenure.