February 11, 2008

Federal Advocacy Action Alert

Action:
Call/e-mail Sens. Durbin & Obama and your U.S. Representative and ask them to extend the current moratorium on implementation of the Centers for Medicare and Medicaid Services’ (CMS) regulations related to intergovernmental transfers (IGT), certified public expenditures and graduate medical education in legislation before it expires on May 25. If implemented, these CMS rules will jeopardize access to health care for our most vulnerable populations - children, the poor, disabled, and the elderly who rely upon this vital program. To send an e-mail message from IHA’s web site click here.

Background:
Despite strong efforts, measures to extend the Medicaid moratorium and provide a temporary increase in Medicaid federal medical assistance percentage and block-grant money for states were not included in the recently passed economic stimulus package (proposed amendments were ruled not germane and withdrawn in the Senate). These CMS rules, which are scheduled to take effect when the current moratorium expires May 25, would have a devastating effect on Illinois’ Medicaid program. 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.

Similar proposals for limiting Medicaid were made in previous years. However, those measures would have required Congressional action – and Congress chose not to act. Last year a majority of members in Congress expressed opposition to such a regulatory approach. Sen. Durbin and Rep. Emanuel provided key leadership in securing the current moratorium as part of the war supplemental bill enacted last year. However, despite passage of the moratorium and previous rejections by Congress to limit funding for vital safety net hospital Medicaid expenditures, CMS ignored congressional intent and finalized rules to be implemented immediately following expiration of the current moratorium on May 25, 2008.

These proposals run counter to states’ efforts to expand health care coverage for our uninsured and would further strain an already fragile health care safety net. In Illinois, they would undermine a critical component of our state’s Medicaid funding system and impair the training of tomorrow’s physicians.

As noted, Congress also is considering a temporary increase in Medicaid’s federal medical assistance percentage (FMAP) to help states (a bipartisan House bill, HR 5258 was introduced on Feb. 7). With Illinois receiving the lowest federal match allowable by law, we also strongly support FMAP relief.

Staff Contact: Barb Filliung