Must Find Long-term Fix For Health Care Safety-net

May 22, 2008

WASHINGTON– U.S. Rep. Diana DeGette, Vice Chair of the Committee on Energy andCommerce, today reacted to the news that the Department of Health andHuman Services (HHS) is temporarily extending the Moratoria on two ofthe Centers for Medicare and Medicaid Services (CMS) rules, PublicProvider and Graduate Medical Education (GME). Moratoria on these tworules will now be extended until August 1, 2008.

"Whilethis allows more time to resolve the impasse, we must still find along-term solution," DeGette said. "The seven draconian regulationsproposed by the Administration will not only have a devastating effecton our entire country's safety-net system, but also on the financialstability of the safety-net provider community in Colorado. Just thesetwo regulations alone would have a drastic impact on Colorado at a lossof over $150 million in federal funds in 2008."

IMPACT OF ALL SEVEN REGULATIONS ON COLORADO

Two Regulations with new August 1 Moratoria

• Cost limits for public providers (CMS 2258-FC)

Loss of federal funds in 2008: $142.2 million Over 5 years: $711 million

• Payment for graduate medical education (CMS 2279-P)

Loss of federal funds in 2008: $12 million Over 5 years: $60 million

Other Regulations

• Payment for outpatient hospital services (CMS 2213-P)

Loss of federal funds in 2008: Not specified Over 5 years: Not specified

• Provider taxes (CMS 2275-P)

Loss of federal funds in 2008: None Over 5 years: None

• Coverage of rehabilitative services (CMS 2261-P)

Loss of federal funds in 2008: Not specified Over 5 years: Not specified

• Payments for costs of school administrative and transportation services (CMS 2287-P)

Loss of federal funds in 2008: $1.4 million Over 5 years: $7 million

• Targeted case management (CMS-2237-IFC)

Loss of federal funds in 2008: $1.8 million Over 5 years: $9.2 million

"DenverHealth, one of our nation's premiere safety-net hospitals, takes aninnovative approach to cutting costs and waste. We need to find apermanent solution to addressing abuse in the system without harmingour entire health care safety-net system," concluded DeGette.

Below is the news from the Department of Health and Human Services:

"Facinga looming adverse court decision and pending action by Congress toextend the moratorium, HHS Secretary Leavitt indicated yesterday thatthe Administration would "voluntarily refrain from making these rules[the public provider cost limit and graduate medical education (GME)rules] effective until August 1, 2008, more than 60 days after themoratorium expires."

Click here to read a Congressional Report on the impact of the seven regulations on the country, including Colorado.

DeGette Cautions We Must Find Permanent Fix Without Harming Safety-Net System; Two Regs will Costs Colorado Over $150 Million