Maryland Delegation Calls on Bush Administration to Repeal Irresponsible Medicaid Regulations

Washington, DC-Today, following the release of a report by the House Committee on Oversight and Government Reform, Congressmen Steny H. Hoyer (Md.-5), Elijah E. Cummings (Md.-7), Albert R. Wynn (Md.-4), Chris Van Hollen (Md.-8), and John Sarbanes (Md.-3) called on the Centers for Medicare and Medicaid Services (CMS) to repeal new Medicaid rules imposed by the Bush Administration that would slash funding for critical programs or eliminate the programs altogether.

The report was compiled with information from state Medicaid directors following the refusal of CMS to provide estimates of how proposed budget cuts would impact individual states. According to the states, the new regulations would reduce federal payments by nearly $50 billion over the next five years-a significant discrepancy from the $15 billion projected by the Bush Administration.

In Maryland, which is considered to have one of the best Medicaid programs in the country, the proposal would result in a loss of millions of dollars for a variety of programs.  The exact cost is unknown because the regulatory language is so vague, raising additional concerns about how these regulations will be implemented.  In the case of critical targeted case management services, the State stands to lose more than $66 million for FY2008 alone. The State also estimates a loss of $1 million in funding for children with special needs.

Additional cuts to the State's programs include eliminating essential services such as a statewide hotline for patients looking for doctors, as well as cuts to outpatient hospital services, provider taxes, and rehabilitative services.

"The report confirms what Governors across the country from both parties have feared - that the new Medicaid regulations would have a harmful effect on state budgets, health care providers and - most importantly - the populations served by Medicaid," stated Congressman Steny H. Hoyer. "In Maryland, the changes would result in a reduction of critical services and a lower quality of care for Medicaid recipients. At a time when the economy is significantly slowing down, it makes no sense to implement changes that compromise a program serving those families who are most in need."

"These irresponsible new regulations are nothing less than an attempt by this Administration to cut our nation's largest federal entitlement program, which is charged with providing health care to 60 million of our most vulnerable citizens," said Congressman Elijah E. Cummings, a senior member of the House Committee on Oversight and Government Reform. "It is simply unconscionable that this Administration would try take away such critical services from so many Marylanders-particularly as our families continue to experience the effects of the President's poor economic policies."

"The Bush Administration's policy of restricting critical Medicaid programs is yet another effort to divert resources in order to continue funding this ‘black hole of a war.'  It further illustrates his willingness to abandon the citizens most in need in order to promote his own irresponsible priorities," said Congressman Albert R. Wynn.  "Limiting the availability of proper healthcare for the poor, children and the disabled, particularly in this time of uncertainty, is essentially kicking people while they're already down." 

"As the economy is slowing down, the last thing that we should be doing is taking away health care benefits from people who need them most," said Congressman Chris Van Hollen.  "This report confirms what we already know.  These new regulations would have a devastating effect on healthcare providers and the quality of care received by children and families.  The Bush Administration should reverse this decision."    

"When you consider rising prices and other burdens facing our working families, these cuts are particularly cynical because they come at a time when these services are most needed and affect those who need them most," said Congressman John Sarbanes. "We need leadership that puts working people first, instead of making them an afterthought."