Across the country, states are facing the fallout of the recession and the resulting reduction in state revenues. In this difficult economic climate, the Bush Administration has suddenly proposed to change the rules of the state-federal partnership that finances Medicaid and to withdraw an estimated $50 billion in federal funding from state economies over the next five years.
The Administration issued seven new Medicaid regulations in 2007 that, taken together, will sharply reduce the federal funding that states receive for Medicaid services. These new regulations restrict federal funding for rehabilitation services, school-based transportation services, case management, and other crucial services.
In Alaska alone, these cuts will eliminate 300 jobs and cost the state $12.0 million in wages, not to mention $32.9 million in lost business activity, according to a new study by Families USA. Just last week, the House of Representatives overwhelmingly passed legislation to put a hold on these harmful regulations. Now it's time for the Senate to act.
The regulation changes issued by the Bush Administration restrict funding for a variety of Medicaid services, including rehabilitation services, school-based transportation, as well as Medicaid administrative services, such as outreach, enrollment, and case management. Click here to read a pdf of the study. Congress didn't have an opportunity to review or debate these changes last summer because of President Bush's political tactics. Now they have that chance.
[Source: Families USA]