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March 17, 2008 - UPDATE

Ten U.S. Representatives from the Illinois Congressional Delegation are co-sponsors of HR3533, The Public and Teaching Hospital Preservation Act. To date, a total of 234 House members have signed on. Please review the names of the Illinois supporters listed below. Senators Durbin and Obama are cosponsors of similar legislation in the Senate, S. 2460 that currently has 30 co-sponsors.

Action:
If your U.S. Representative has not yet signed on, call or e-mail his/her office and urge them to co-sponsor HR3533 and ensure that its provisions are included in legislation enacted this year. This bi-partisan bill would extend the current moratorium on certain Medicaid rules for one year (until May 2009) and will help protect Illinois’ Medicaid program from devastating cuts. Click here to send an e-mail message.

S. 2460 – Co-sponsors:
Senator Richard Durbin
Senator Barack Obama

HR 3533 - Current Illinois Co-sponsors:
Melissa Bean
Jerry Costello
Danny K. Davis
Rahm Emanuel
Luis Gutierrez
Phil Hare
Jesse Jackson Jr.
Bobby Rush
Jan Schakowsky
John Shimkus

Background:
Representatives Eliot Engel (D-NY) and Sue Myrick (R-NC) introduced The Public and Teaching Hospital Preservation Act (HR3533). This bill would extend until May 2009 the current moratorium on the Centers for Medicare & Medicaid Services’ (CMS) implementation of rules related to intergovernmental transfers, certified public expenditures, and Medicaid payments related to graduate medical education (GME).

Disregarding the intent of Congress, on May 25, 2007 – the same day the President signed the supplemental appropriations bill that imposed the congressional moratorium on the CMS proposed rule – the Agency issued the final rule to limit payments to government safety-net providers by capping reimbursement payments and redefining public hospitals so as to limit funding for legitimate Medicaid expenditures. The rule also includes additional Medicaid payment reductions to teaching hospitals. On May 29, 2007 CMS then published the final rule in the Federal Register.

Recent state estimates submitted to the U.S. House Committee on Oversight and Government Reform note that the Public Provider regulation and the GME rules, coupled with other imposed CMS regulatory cuts would reduce Medicaid funding to Illinois by more than $2.5 billion over five years, including $1.3 billion to certain public hospitals in Illinois (including the Cook County Bureau of Health Services) and to the State. The Cook County IGT is a vital part of the financial structure of the Illinois Medicaid program, ensuring access to health care services for thousands of low income, elderly, disabled, and children throughout the state. In addition, supporting graduate medical education (GME) is a critical investment in the state's health care delivery system, enabling hospitals to train the next generation of physicians and clinicians.

These cuts would jeopardize health care access for our most vulnerable populations throughout the state - children, the poor, disabled and elderly - people who depend on this vital program. In addition, it comes at a time when the nation and states are seeking ways to expand health care coverage for the uninsured and strengthen a fragile health care safety net.

Major Medicaid policy reforms that will impact the lives of millions of Americans warrant Congressional deliberation, with input from all of the concerned parties. They should not be unilaterally imposed by a government agency.