House Likely to Approve Medicaid Eligibility Cuts and Partial ACA Defunding Bills - March 15, 2011

According to Republican staff, the House Energy and Commerce Committee is drafting two pieces of legislation which would alter important provisions included in the Affordable Care Act. The first would amend or strike the ACA’s requirement that states maintain their current Medicaid eligibility levels and procedures, with limited exceptions. This legislation would allow states to significantly reduce their Medicaid rolls, potentially saving states billions in Medicaid spending by denying millions of beneficiaries from Medicaid benefits. NAPH strongly opposes removal of this requirement. The ranking Republican on the Senate Finance Committee, Orrin Hatch (R-Utah), has said he also intends to introduce legislation to remove the Medicaid Maintenance of Effort (MOE) requirement.

Another bill drafted by the Committee would remove funding from five different accounts included in the ACA. While the authorization to spend money would remain, if the bill becomes law, Congress would have to separately provide funding for these activities. The five accounts are:

• Grants to states to establish health insurance exchanges
• Prevention and Public Health Trust Fund
• Construction and Capital Costs for School-based Health Centers
• Personal Responsibility Education Program
• Teaching health centers development grants