House Committee Unanimously Approves Legislation That Would Block New Medicaid Rules Despite Veto Threat

The House Energy and Commerce Committee on Wednesday voted 46-0 to pass a bill (HR 5613) that would delay implementation of seven new Medicaid regulations for one year, CQ Today reports (Armstrong, CQ Today, 4/16).

The legislation, sponsored by committee Chair John Dingell (D-Mich.), would delay implementation of the regulations until April 1, 2009. Under the regulations, proposed by the Bush administration, states could not use federal Medicaid funds to help pay for physician training. The regulations also would place new limits on Medicaid reimbursements to hospitals and nursing homes operated by state and local governments and limit coverage of rehabilitation services for individuals with disabilities and mental illnesses. In addition, the bill would provide $25 million annually for efforts to fight Medicaid fraud (Kaiser Daily Health Policy Report, 4/16).

Before the passage of the legislation, the committee by voice voted approved a manager's amendment sponsored by Dingell that would make several changes, one of which would revise the implementation of a program to verify electronically the assets of Medicaid beneficiaries (CQ Today, 4/16). Dingell said of the seven Medicaid regulations, "There is little support outside the four corners of HHS for these actions" (Freking, AP/Austin American-Statesman, 4/16).

Prospects
Committee ranking member Joe Barton (R-Texas) said that both the House and Senate have the votes to override a presidential veto, although he predicted that President Bush would not veto the bill as threatened, CongressDaily reports (Edney, CongressDaily, 4/17). HHS Secretary Mike Leavitt on Tuesday sent a letter to committee members that said senior White House advisers will ask Bush to veto the bill (AP/Austin American-Statesman, 4/16).

Barton said, "I don't think the veto threat was appropriate, and I don't think it will be successful if vetoed because the votes simply aren't there" (CQ Today, 4/16). In addition, he said, "I hope that in the time period while the moratorium is in place, we can work together not just on a committee level, but with the administration, to find a way to fine-tune some of the regulations and see if they can go into effect at some point in time" (AP/Austin American-Statesman, 4/16).

Dingell said, "I hope the president will take a look at the vote we're going to get on this matter and decide maybe a veto is unwise."

According to CQ Today, the bill likely will pass in the Senate, but, "if Republicans stand firm, they could sustain a veto" (CQ Today, 4/16).

New York To Join Lawsuit Over Regulations
New York Gov. David Paterson (D) recently announced that New York will join a lawsuit filed by several other states against the federal government over the Medicaid regulations, the AP/Albany Times Union reports. Paterson said the regulations will limit the ability of the state to provide case management services to vulnerable populations.

Maine, Maryland, Oklahoma and New Jersey earlier this year filed the lawsuit in U.S. District Court in Washington, D.C., and Kentucky and Tennessee since have joined the case (AP/Albany Times Union, 4/16).