May 05, 2011

Legislation Advanced To Repeal Medicaid Maintenance-Of-Effort Provisions

Kaiser Health News   ·  Link to Article

The measure's supporters say it would lead to savings for the federal government of nearly $3 billion over the next five years.

The Hill: GOP Unveils Medicaid Flexibility Bill
Congressional Republicans' bill to let states cut their Medicaid rolls would save the federal government nearly $3 billion over the next five years, according to a preliminary estimate from the Congressional Budget Office (CBO). A group of House and Senate Republicans on Tuesday outlined their bill to repeal the Medicaid "maintenance of effort" provisions in the new health care law (Baker, 5/3).

Politico Pro: GOP Introduces Repeal Of Medicaid Provisions
The "State Flexibility Act" would allow states to cut Medicaid spending or reduce enrollment without losing matching funds from the federal government. Congressional Democrats oppose the measure, arguing that it would eliminate benefits for the most needy. The MOE repeal is expected to be one of the next and most significant health fights. The legislation has the support of many Republican governors and could get support from some Democratic governors. They could lobby their senators to support the legislation. But so far, it doesn't have support from any Democrats on the Hill (Haberkorn, 5/3).

Kansas Health Institute News: Colyer Backs Push In Congress For More Medicaid Flexibility
A group of Republicans in Congress today outlined a bill that would let states trim their Medicaid rolls. The Congressional Budget Office in a preliminary estimate projected the proposed legislation would save the federal government almost $3 billion over the next five years. ... "Governor Brownback and I have said all along that we need Kansas solutions to Kansas problems," said Lt. Gov. Jeff Colyer in a prepared statement. "Obamacare instituted costly unfunded mandates." ... He and the governor have repeatedly said that the so called "maintenance-of-effort" requirements in the health reform law put the state in a financially untenable situation (Shields, 5/3).

Modern Healthcare: GOP Lawmakers Introduce Bills Tagerting Medicaid Maintenance-Of-Effort Requirements
Republican lawmakers on Tuesday introduced bicameral legislation to repeal Medicaid maintenance-of-effort requirements they say are burdensome and force states to make significant cuts to programs such as education and law enforcement. Sen. Orrin Hatch (R-Utah) introduced the State Flexibility Act, while Rep. Phil Gingrey (R-Ga.), a physician, and Rep. Cathy McMorris Rodgers (R-Wash.) co-sponsored a companion bill in the House (Zigmond, 5/3).

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