Moratorium on Cuts will Save NC $514 Million Next Year
Washington, D.C. – Representative Heath Shuler today voted for crucial legislation to
protect Medicaid from new regulations proposed by the Bush Administration. These new
regulations could have cost states up to $50 billion in federal matching funds over the
next five years. North Carolina could have lost up to $2.7 billion over that five year
period, including $514 million next year. The Protecting the Medicaid Safety Net Act,
H.R. 5613, delays the implementation of the changes until March 2009.
The Bush Administration’s seven proposed regulation changes included restrictions on
payments for rehabilitation services, case management services, hospital outpatient
services, and safety net institutions. The changes also completely eliminated payments
for graduate medical education and school-based outreach and transportation programs.
“Medicaid is a partnership between the federal governments and the states. For that
system to work properly the federal government must fulfill its end of the bargain,” Rep.
Shuler said.
Medicaid operates on a cost sharing basis between the federal and state governments. For
every dollar a state spends on Medicaid, the federal government contributes matching
funds. In North Carolina, for every dollar spent on Medicaid, the federal government
contributes $1.78.
“Slashing these programs, which help the youngest and poorest citizens of this nation,
would have been immoral. I was proud to stand up with so many of my colleagues on
both sides of the aisle to implement this moratorium,” Rep. Shuler concluded.
The Medicaid Safety Net Act passed with overwhelming bipartisan support 349-62. It
had previously been endorsed by all 50 state governors, the National Association of
Counties, the American Hospital Association, the American Academy of Pediatrics, and
the AARP.
###
Download: Rep. Shuler Stands Up for NC Hospitals by Protecting Medicaid
