Medicaid Remains at Center of Storm on Capitol Hill - May 17, 2011

The Health Subcommittee of the House Committee on Energy and Commerce marked-up legislation on May 12 to repeal Medicaid maintenance of effort requirements and allow states to substantially reduce their Medicaid rolls. The bill, H.R. 1683, passed the subcommittee on a party-line vote after the committee rejected three Democratic amendments. The full Energy and Commerce committee is expected to consider the legislation next week after the House returns from a one-week recess. The legislation is slated to make its way to the floor of the House in the next several weeks and is expected to pass. The real debate will likely take place in the Senate, which saw the introduction of identical legislation earlier this month. Senate Democratic staffers have expressed concern that the bill may currently have the votes to pass on its own or as an amendment to other legislation. NAPH strongly opposes the legislation, as it would result in a significant increase in the number of uninsured Americans. We have urged NAPH members to contact their delegation to talk about the effect of this legislation on their hospital systems and the patients they serve.

While changes to Medicaid eligibility continue to be considered on Capitol Hill, negotiators from Congress and the White House are meeting behind closed doors to discuss a plan to reduce growth in the federal budget deficit. Details of the negotiations remain sketchy, but it is clear that cuts to Medicaid remain on the table in some form. NAPH staff is engaging with critical players in the ongoing negotiation to spread our message about the importance of Medicaid to safety net hospitals and the value of Medicaid coverage for more than 50 million beneficiaries.