Impact Federal Medicaid Issues

February 21, 2005

The President's Day Congressional recess, February 18 – 28, will find many federally elected representatives working from home offices, presenting an opportunity to discuss with them the impact of proposed Medicaid spending cuts on behavioral healthcare providers. PCPA urges members to contact senators and representatives in support of the Bipartisan Commission on Medicaid Act (S. 338) and ask them to take a measured approach in considering Medicaid policy changes.

Introduced by United States (US) Senators Gordon Smith (R-OR) and Jeff Bingaman (D-NM) and others, the Bipartisan Commission on Medicaid Act (S. 338) would establish a commission charged with a comprehensive review of Medicaid's role in the national healthcare system and its funding mechanisms. The commission would be comprised of persons appointed by both parties of the US Senate and US House of Representatives, the National Governors Association, the National Association of Counties, and the National Association of State Medicaid directors, among others. Appointments must be balanced across both parties and represent advocates for the population served by Medicaid as well as healthcare providers. The senators have indicated that this legislation is an alternative to addressing the Medicaid issue as part of Congress' annual budget process and provides a means for more substantive deliberation on policy issues. Many hope that this process will postpone or halt efforts to make substantial cuts to the program. Pennsylvania’s junior Senator Rick Santorum is also a co-sponsor of the bill.

The administration, in its FY 2006 budget proposal, has indicated that it is seeking modifications to the Medicaid program that will yield $60 billion in "savings from inappropriate Medicaid spending." In addition, others like Senator Judd Gregg of New Hampshire, chairman of the Senate Budget Committee, have signaled that they also view Medicaid reductions as a central issue for controlling the growth of the federal budget. Specific proposals to cut spending over five years include a $3.1 billion cut achieved by limiting Targeted Case Management and a $5.9 billion reduction that is attained by closing off Intergovernmental Transfers – proposals of particular concern to behavioral healthcare providers.

The bill is available electronically from the Government Printing Office either on the link above or at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s338is.txt.pdf. Information about contacting Pennsylvania representatives is available from the Legislative Affairs section of the PCPA web site. With reductions in behavioral health service delivery already being proposed by the Pennsylvania Department of Public Welfare, it is critical that providers stay abreast of national issues that may further restrict available funds. Questions about federal Medicaid issues may be directed to Kris Ericson or Melissa DiSanto Simmons at the association.

PCPA acknowledges the National Council for Community Behavioral Healthcare’s (NCCBH) assistance is sharing this information for distribution. PCPA is a NCCBH member.

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