Obama Suggests Interest in Increasing Physician Medicaid Payments - March 17, 2010

In a March 2 letter to Congress, President Obama indicated his support for a proposal by Republican Senator Charles Grassley that would increase Medicaid payments for pediatricians, children’s hospitals, and dentists as long as the increase can be achieved in a fiscally-responsible manner. Under the Grassley amendment, which was introduced last year through the Finance Committee, rates for these groups would have been increased to Medicare level by 2014; the increase would have phased out by 2019. The Grassley amendment was rejected because it also would have eliminated subsidies to individuals over 300% of the poverty level. Obama offered no specifics on how he would integrate Grassley’s proposed Medicaid payment increases.