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National Alliance on Mental Illness
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Next Steps in Stopping Medicaid Regulations

April 11, 2008

While the Bush Administration has threatened to veto HR 5613, it managed to gain support from both Democrats and Republicans.  It is expected that the bill will be pushed through the full House Energy and Commerce Committee on April 16.  More importantly however, House leaders are likely to try to attach moratoria on several Medicaid regulations to the upcoming supplemental funding bill for Iraq and Afghanistan

Combined, the 7 regulations are projected to drain $1.65 billion in federal matching funds for state Medicaid programs in 2008 and 2009.  As result, Congress must offset the “expenditure” associated with stopping the regulations from going into effect.  To help reach that number, the bill would require more scrutiny of beneficiary eligibility through heightened access to financial records.   In addition, the bill authorizes $25 million in additional funding to crack down on Medicaid fraud and abuse.

Rehabilitations and Case Management Regulations Threaten Mental Health Services

Of most importance to NAMI are the regulations impacting services under the Rehabilitation Option and Case Management (including Targeted Case Management).  Currently there is a moratorium in place for Rehabilitation that expires on June 30.  By contrast, the interim final regulations on Case Management have been published and went into effect last month.   The other regulations covered under HR 5613 include funding for graduate medical education, school-based services for children and financing of public hospitals

For More Information

View NAMI’s comments on the Rehabilitation and Case Management rules.

Read analysis of the Medicaid regulations by the Center on Budget and Policy Priorities here and here

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