The American Health Care Association and National Center for Assisted Living are praising a new bipartisanHouse bill that would put a one-year moratorium on seven Medicaid regulations.
The bill, Protecting the Medicaid Safety Net Act of 2008(H.R. 5613), would temporarily halt the regulations, which are expected to reduce federalMedicaid payments to states by about $50 billion over the next five years. One,which goes into effect on April 22, reduces the threshold on allowable providertaxes to 5.5% from 6%. The other narrows the definition of public provider andreduces Medicaid revenues to such providers. It is set to take effect on May 25when the rule’s current moratorium expires. Both directly affect long-term careproviders.
The bill comes as states face other grim statistics.Earlier this week, The New York Times reported that 25 states are expectingbudget shortfalls for the 2009 fiscal year. Representatives John Dingell (D-MI)and Tim Murphy (R-PA) sponsored the bill.
