For Immediate Release                                                                                             Contact: Donna Doneski, (202) 898-6321

March 18, 2008                                                                                                          

  AHCA/NCAL Urges Support for New House Effort to Delay Implementation of Medicaid Regulations

Bipartisan Dingell-Murphy Bill Places One-Year Moratorium on Controversial CMS Initiative

Washington, DC – The American Health Care Association/National Center for Assisted Living (AHCA/NCAL) urged strong and swift congressional support for a new bipartisan bill sponsored by U.S. Representatives John Dingell (D-MI) and Tim Murphy (R-PA) that would impose a one-year moratorium – essentially halting implementation – of seven harmful Medicaid regulations issued by the Centers for Medicare & Medicaid Services (CMS).

 “Given today’s challenging economic times, we worry that these regulations will limit seniors’ ability to access key Medicaid programs, and that the loss of federal funds will shift costs to the states, thereby disrupting existing systems of care for fragile populations,” stated AHCA/NCAL President and CEO Bruce Yarwood. “We thank Chairman Dingell and Representative Murphy for stepping up on behalf of America’s seniors and the front-line staff who care for them each day by proposing a one-year moratorium on these rules with this bipartisan legislation.”

 The bill, Protecting the Medicaid Safety Net Act of 2008 (H.R. 5613), would halt Bush Administration efforts to reduce federal Medicaid funds, not through greater efficiency, but by unilaterally implementing CMS regulations that would limit Medicaid payments for targeted case management services, rehabilitation services, school-based transportation and outreach services, cost limit for public providers, provider taxes, and hospital outpatient services.

 Yarwood pointed out that states already bear a significant fiscal burden, referencing a March 17 New York Times article, “As the Economy Falters, So Do State Budgets,” which focuses needed attention on the fact that “at least 25 states were expecting budget shortfalls for the 2009 fiscal year,” and how the nation’s Governors are dealing with the economic downturn. He also cited the recent U.S. House of Representatives’ Committee on Oversight & Government Reform report, The Administration's Medicaid Regulations: State-by-State Impacts, which shows that the seven regulations targeted by the Dingell-Murphy bill would add to states’ existing burden by reducing federal Medicaid funding by nearly $50 billion over the next five years—more than three times the $15 billion estimated by the Bush Administration.

 “It is important for Congress to focus on why these Medicaid dollars are needed and what impact implementing these regulatory changes would have on states, communities, and most importantly, Medicaid beneficiaries,” observed the AHCA/NCAL President. “For example, AHCA/NCAL estimates that the provider tax regulation would cut $1.57 billion in Medicaid funding for the long term care needs of seniors and people with disabilities. That’s a significant cut, and one that would affect patient access to the highest quality long term care and services our nation has to offer.”

 Yarwood also noted that the long term care profession is not just talking about the problem at hand, but proposing sound, policy-based solutions to help fix a broken long term care financing system. The Medicaid reform principles outlined by AHCA/NCAL and the Alliance for Quality Nursing Home Care warns that implementing these regulations would have a significant negative impact on states’ ability to provide for a growing population of older, more seriously ill seniors with increasing complex care needs. The Long Term and Post-Acute Care Financing Reform Proposal, which is available at www.ahca.org, stresses that future budget savings should not come at the expense of today’s quality long term care for economically disadvantaged, frail seniors.

“We appreciate the leadership shown by Chairman Dingell and Representative Murphy in proposing this one-year moratorium,” remarked Yarwood. “Their willingness to take a step back in the short term ensures that the true impact of these regulations can be better assessed and that federal and state lawmakers can seize control of eldercare financing issues in the long term. We look forward to working with Chairman Dingell, Representative Murphy, and other leaders in Congress on this bill and on more comprehensive long term care financing reform.”

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