THIS IS A PRESS RELEASE FROM THE OFFICE OF UNITED STATES SENATOR JAY ROCKEFELLER.

Washington, D.C.—Senator John D. (Jay) Rockefeller IV applauded President Obama’s Administration for rescinding three Medicaid regulations that would have significantly reduced access to Medicaid for eligible populations. Effective July 1, 2009, the U.S. Department of Health and Human Services has rescinded regulations proposed by the Bush Administration that would have eliminated long-standing federal policy regarding Medicaid reimbursement for school-based services, narrowed Medicaid payment policy for covered case management services, and limited Medicaid funding for outpatient hospital and clinic services.

“I fought to make sure these Medicaid regulations were halted, and I’m gratified to see the end result,” said Senator Rockefeller, Chairman of the Senate Finance Subcommittee on Health Care, whose Economic Recovery in Health Care Act of 2008 included language to delay several harmful Medicaid regulations proposed by the Bush Administration.

“Had these regulations been implemented, there would have been significant gaps in coverage for the vulnerable children and families who depend on Medicaid,” Rockefeller continued. “By changing these rules, the Obama Administration has improved Medicaid coverage for children in our schools, preserved access to targeted case management services, and allowed Medicaid enrollees to keep receiving outpatient hospital and clinic services. I applaud the Administration for doing the right thing and rescinding these ill-advised regulations.”

Background

U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced that the Administration will rescind all or part of three Medicaid regulations and delay a fourth. The regulations had been subject to Congressional moratoria set to expire on July 1, 2009.

Officials with the American Association of School Administrators believe schools will save close to $1 billion dollars due to the rescission of the Medicaid regulations that would have eliminated school based administrative and transportation claiming.

The regulations are the following (courtesy of the Centers for Medicare and Medicaid Services):

Rescinding a final rule in its entirety on school-based administration and transportation (CMS-2287-F), published December 28, 2007, that would have eliminated reimbursement for school-based administrative costs and costs of transportation to and from schools. The rescission reflects concern that the rule could limit the Medicaid administrative outreach activities of schools, and that the overall budgetary impact on schools could potentially impact their ability to offer Medicaid services to students.

Rescinding a final rule in its entirety regarding the definition of outpatient hospital services under the Medicaid program (CMS-2213-F), published November 7, 2008, that would have limited the outpatient hospital and clinic service benefit for Medicaid beneficiaries to the scope of services recognized as an outpatient hospital service under Medicare. This rule was rescinded because CMS became aware that coverage beyond that scope could not be easily moved to other benefit categories, resulting in a larger impact than previously anticipated.

Rescinding certain provisions of an interim final rule on targeted case management (CMS-2237-IFC), published December 4, 2007, which would have restricted beneficiary access to case management services. These provisions appeared to, in practice, restrict beneficiary access to needed covered case management services, and limit state flexibility in determining efficient and effective delivery systems for case management services.

Delaying until June 30, 2010, the enforcement of portions of a final regulation on provider taxes (CMS-2275-F) that clarified limitations on health care related tax programs so that CMS could determine whether States need additional clarification or guidance. CMS may also further review the potential impact of the regulation, and give additional consideration to alternative approaches.