NELSON: SUPPLEMENTAL DELAYS COSTLY MEDICAID REGULATIONS

Nebraska Constituencies Saved from Regulations That Would Cost Millions

June 26, 2008 - Nebraska's Senator Ben Nelson announced today he that backed an emergency war supplemental bill the Senate approved funding the wars in Iraq and Afghanistan. It includes other domestic aid and provisions blocking Medicaid regulations that would dramatically drive up the cost of services for states such as Nebraska.

"These Administration-driven Medicaid regulations come at too high of a cost to states at a time when state economies are faltering," said Senator Nelson. "The federal government must take more responsibility in providing Medicaid services. Otherwise, states will be forced to cut these services and low-income and disabled Americans will have few alternatives for quality medical care."

Of the six regulations being delayed, three would negatively impact Nebraska, costing a combined amount of $41.1 million. The three proposed rules would:

eliminate federal Medicaid funding for the costs of graduate medical education (GME) provided by teaching hospitals at a cost to Nebraska of $10.8 million per year;

eliminate longstanding federal policy by prohibiting federal matching Medicaid dollars to pay for (1) administrative activities coordinating care for school-aged children, and (2) transportation to and from school for children in need of care, at a cost of $27.7 million per year to Nebraska;

as well as a rule that would prohibit federal matching funds for rehabilitative services furnished through a non-medical program such as foster care, adoption services, education, or juvenile justice, costing Nebraska $2.6 million per year.

If these regulations had been implemented, states would face the choice of reducing their Medicaid programs by withdrawing eligibility, reducing benefits, or slashing provider payments at a time when the need for Medicaid coverage is growing due to a sluggish economy.

"We cannot push a greater share of the costs for these programs onto the backs of our states," said Nelson. "Every American deserves quality healthcare and viable access to it. I applaud Senate passage of the supplemental for these reasons as well as to ensure the continued funding of our troops abroad."

The supplemental also includes funding for the wars in Iraq and Afghanistan at a total cost of $161.8 billion. Other provisions include domestic disaster aid, foreign food aid, refugee assistance, Veterans education benefits, and an extension of federal unemployment benefits.

Senator Nelson serves on the Senate Appropriations Committee.

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	Press Release	June 26, 2008
NELSON: SUPPLEMENTAL DELAYS COSTLY MEDICAID REGULATIONS Nebraska Constituencies Saved from Regulations That Would Cost Millions June 26, 2008 - Nebraska's Senator Ben Nelson announced today he that backed an emergency war supplemental bill the Senate approved funding the wars in Iraq and Afghanistan. It includes other domestic aid and provisions blocking Medicaid regulations that would dramatically drive up the cost of services for states such as Nebraska. "These Administration-driven Medicaid regulations come at too high of a cost to states at a time when state economies are faltering," said Senator Nelson. "The federal government must take more responsibility in providing Medicaid services. Otherwise, states will be forced to cut these services and low-income and disabled Americans will have few alternatives for quality medical care." Of the six regulations being delayed, three would negatively impact Nebraska, costing a combined amount of $41.1 million. The three proposed rules would: eliminate federal Medicaid funding for the costs of graduate medical education (GME) provided by teaching hospitals at a cost to Nebraska of $10.8 million per year; eliminate longstanding federal policy by prohibiting federal matching Medicaid dollars to pay for (1) administrative activities coordinating care for school-aged children, and (2) transportation to and from school for children in need of care, at a cost of $27.7 million per year to Nebraska; as well as a rule that would prohibit federal matching funds for rehabilitative services furnished through a non-medical program such as foster care, adoption services, education, or juvenile justice, costing Nebraska $2.6 million per year. If these regulations had been implemented, states would face the choice of reducing their Medicaid programs by withdrawing eligibility, reducing benefits, or slashing provider payments at a time when the need for Medicaid coverage is growing due to a sluggish economy. "We cannot push a greater share of the costs for these programs onto the backs of our states," said Nelson. "Every American deserves quality healthcare and viable access to it. I applaud Senate passage of the supplemental for these reasons as well as to ensure the continued funding of our troops abroad." The supplemental also includes funding for the wars in Iraq and Afghanistan at a total cost of $161.8 billion. Other provisions include domestic disaster aid, foreign food aid, refugee assistance, Veterans education benefits, and an extension of federal unemployment benefits. Senator Nelson serves on the Senate Appropriations Committee. ###