Former CMS Administrator Scully Says Medicaid Reform Plan Unlikely This Year

Congress is unlikely to develop a plan to reform Medicaid this year, despite the fact that the program's problems are "100 times" worse than those of Medicare, former CMS Administrator Tom Scully said Wednesday, CQ HealthBeat reports. Speaking at a meeting of the American Association for Homecare, Scully said a comprehensive Medicaid reform plan would require approval from the governors, and no governor would be willing to accept the funding reductions that would be required of some states (CQ HealthBeat, 6/8). As part of the fiscal year 2006 budget resolution approved by Congress in April, lawmakers directed the House and Senate to eliminate $10 billion in Medicaid spending over five years. HHS Secretary Mike Leavitt in May established a commission that will make recommendations to HHS on ways to reduce Medicaid spending. The commission also will recommend long-term proposals to reduce Medicaid costs. Democratic lawmakers on May 26 said that they will not participate in the commission, and earlier this month the National Governors Association also announced that governors will not participate (Kaiser Daily Health Policy Report, 6/7).