A handful of new Medicaid regulations would cost states almost $50 billion over the next five years, more than three times what the CMS estimated, according to a report from the House Oversight and Government Reform Committee. One regulation, according to the report, would cost states more than 10 times the Bush administrations estimates.
The committee surveyed states on seven regulations issued over the past year that are either in effect or soon will be. The regulations, in part, would cut funding to graduate medical education, limit payments to public hospitals, narrow the scope of Medicaid outpatient services and alter a few others.
As the economy tips into recession, the last thing we should be doing is taking federal funds from states, especially funds that are supposed to help people with their health and medical expense, committee chairman Henry Waxman (D-Calif.) said in a written statement. The Bush administration has proposed drastic changes in the Medicaid program, without even attempting to understand the financial impact on states, localities and the people they serve, he said.
Waxmans home base of California is expected to lose more than any other state, $10.7 million, over the next five years, with New York facing possible losses of $7.3 million, and Texas at $3.3 million.
This year, the federal government is expected to spend $207 billion on Medicaid, far and away the largest federal grant program to the states. -- by Matthew DoBias
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