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Medicaid and CHIP Regulations Delayed
January 31, 2001

Shortly after taking office, President George W. Bush issued an Executive Order putting a 60-day hold on all regulations that the Clinton Administration had issued within the last days of the Administration.

For Medicaid and the Children's Health Insurance Program (CHIP), this means that recently issued regulations that were final but had an implementation date after January 20, 2001 will have an additional 60 days added on to their implementation date. This affects recently issued regulations governing most aspects of the CHIP program, Medicaid managed care protections released in late January that were passed as part of the Balanced Budget Act in 1997, new rules restricting the Medicaid Upper Payment Limit, and new rules regarding limiting the use of restraints for psychiatric patients (see related PCPA Alert).

It is not clear exactly what will happen when the hold expires. The Administration may turn to Congress to overturn some of the features of the regulations that it doesn't like. Alternatively, the Administration could seek to retract the final rules and issue new ones, which may be subject to legal challenge. PCPA will keep members informaed as new information becomes available.

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