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Press Release

Congressman Cuellar Supports Protecting the Medicaid Safety Net Act of 2008

Today, Congressman Henry Cuellar voted in favor of H.R. 5613, Protecting the Medicaid Safety Net Act of 2008, which passed the House by a vote of 349-62. This bipartisan bill places a moratorium until March 2009 on seven Administration-imposed Medicaid regulations that would slash federal Medicaid funding to states for vital programs and services by about $18 billion over the next five years.

The bill also establishes an independent review of these regulations prior to the expiration of the moratorium next year.  In addition, it provides $25 million to HHS each year, beginning in FY 2009, to fight fraud and abuse in the Medicaid program.

Specifically, by imposing a moratorium, this bill would protect states, beneficiaries, and providers from the Medicaid cuts caused by the following seven rules:

• Restrictions on payment for Medicaid coverage of rehabilitation services
• Restrictions on payment for Medicaid coverage of case management services
• Elimination of payment for school-based transportation and outreach
• Redefinition of allowable provider taxes used to raise state funding for Medicaid
• Restrictions on payment for Medicaid hospital outpatient benefits
• Elimination of payment for graduate medical education in Medicaid
• Restrictions on payments to safety net institutions (intergovernmental transfers)

“I am proud to join with my colleagues in the House of Representatives in opposing these proposed Medicaid regulations, and I will continue to work on behalf of local physicians, hospitals and their patients,” said Cuellar. “Their safety and health is of paramount importance to me in Congress, and the security of our country rests upon the continued solvency of the safety net institutions for physicians and Medicaid beneficiaries.”

Groups who supported this bill include University Health Systems, TORCH, Mercy Hospital, Christus Santa Rosa, Governor Perry of Texas, Texas Association of School Administrators, National Association of Social Workers, American Hospital Association, American Academy of Pediatrics and AARP.

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Congressman Henry Cuellar is a member of the House Homeland Security, Small Business,
and Agriculture Committees in the 110th Congress.  Accessibility to constituents, education, health care and economic development are his priorities.