Administration Medicaid Regulations Will Have Devastating Effect On Colorado

WASHINGTON — Energy and Commerce Committee ViceChair Diana DeGette (D-CO) today commented on a report released by theHouse Committee on Oversight and Government Reform on the impact of theBush Administration's proposed Medicaid Regulations. The new report, The Administration's Medicaid Regulations: State-by-State Impacts, includes an analysis of the impact on Colorado.

"With the economy worsening, the last thing we should be doing istaking federal funds from states, especially funds that help peoplewith their health expenses," said DeGette, who is the Vice Chair of theCommittee on Energy and Commerce, which has jurisdiction overMedicaid. "The Bush Administration has proposed drastic changes in theMedicaid program that will have a devastating financial impact onColorado and the health of our residents."

The report details the state-by-state impacts of seven regulationsissued by the Centers for Medicare & Medicaid Service (CMS) thatwould make major, wide-ranging changes in Medicaid, the nation'slargest low-income health care program.

"I am committed to reversing these draconian regulations that put thehealth of Coloradoans at risk. Denver has some of the premieresafety-net institutions in the Rocky Mountain West – these regulationsmay force many of them to close their doors to those who cannot affordcare. Congress is considering a variety of actions, including alegislative fix, that would not allow the federal government fromtaking these vital funds away from the states," concluded DeGette.

The report findsthat the state estimates of the fiscal impact of the CMS regulationsare significantly higher than the $15 billion impact projected by theAdministration for next five years. States estimated that theregulations would reduce federal payments to them by nearly $50 billionover the next five years, more than three times the Administration'sestimate.

The report also finds:

• The combined effect of the reductions in federal funds from allseven regulations represents a major fiscal blow for manystates;

• The regulations will reduce federal spending by shifting costs, not through greater efficiencies;

• The regulations will disrupt existing systems of care for fragile populations; and

• The regulations threaten the financial stability of the hospitals,emergency rooms, and clinics that treat Americans withouthealth insurance.