Illinois Hospital Association

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April 30, 2008

Time is Running Out for Congress to Enact  Moratorium on Harmful CMS Medicaid Rules

Congress must take action by May 25 to extend a moratorium on devastating Medicaid rules by attaching HR5613 to the supplemental appropriations bill to fund the wars in Iraq and Afghanistan.

The U.S. House of Representatives has already overwhelmingly approved HR5613 - the Protecting the Medicaid Safety Net Act of 2008 - legislation to extend the moratorium on Medicaid rules. The vote was 349-62. President Bush has said he would veto the measure, but supporters have more than the 2/3 majority (290 votes) needed for a House override of a veto.  Similar legislation, S2819, is pending in the U.S. Senate.

ACTION REQUESTED: Urge your members of Congress to urge their leaders to attach HR5613 to the supplemental appropriations bill to fund the wars in Iraq and Afghanistan by clicking here.

The Illinois Hospital Association thanks members for contacting their U.S. Representatives in support of HR5613, and thanks the members of the Illinois Congressional Delegation who voted for and/or cosponsored the bill.

Illinois "Yea" Votes:
Melissa Bean
Judy Biggert
Jerry Costello
Danny Davis
Rahm Emanuel
Bill Foster
Luis Gutierrez
Phil Hare
Jesse Jackson Jr.
Timothy Johnson
Mark Kirk
Ray LaHood
Daniel Lipinski
Peter Roskam
Jan Schakowsky
John Shimkus

Illinois "Nay" Votes:
Donald Manzullo

Not Voting – but are co-sponsors of HR5613:
Bobby Rush
Jerry Weller

Background:
HR5613, introduced by House Energy and Commerce Committee Chairman John Dingell (D-MI) and Tim Murphy (R-PA), would extend until March 31, 2009 moratoria on several CMS Medicaid rules, including rules affecting intergovernmental transfers (IGT), certified public expenditures, and graduate medical education, that are set to expire on May 25. In addition, HR5613 would delay regulations affecting hospital outpatient coverage; state provider tax laws; coverage of rehabilitation services for disabled people; outreach and enrollment in schools and specialized school medical transportation for children under Medicaid; and case management services that help people with disabilities to remain in the community. Together the rules would cut Medicaid by an estimated $20 billion over 5 years, with Illinois experiencing a reduction in Medicaid funding of more than $2.5 billion over 5 years, impacting both patients and providers.

The Cook County IGT is a vital part of the financial structure of the Illinois Medicaid program, helping to ensure access to health care for thousands of low income children, elderly, disabled people throughout the state. In addition, supporting graduate medical education (GME) is a critical investment in the state’s health care delivery system and tomorrow’s physicians.

It also is important to note that eliminating the direct costs associated with graduate medical education and reducing payments for outpatient services will have an adverse effect on the upper payment limits (UPL). Lower UPLs would restrict and reduce payments that can be made to Illinois hospitals under the Illinois Hospital Assessment Program – a statewide program that for several years has provided vital support for Illinois’ health care delivery system.