Two CMS Items in the Federal Register

The Centers for Medicare and Medicaid Services (CMS) today placed in the Federal Register a series of publications. These include the two attached documents: the final rule on school-based special education services and a CMS internal reorganization that will affect states' interactions with the agency.


CMS Issues Final Rule on Medicaid Reimbursement for School-Based Administration and Transportation

Today, the Centers for Medicare & Medicaid Services (CMS) placed on display at the Office of the Federal Register a final rule (CMS-2287-F) regarding Medicaid reimbursement for school-based administration and transportation. These regulations are effective 60 days after the date of publication in the Federal Register; however, under recently passed legislation, there will be a six-month delay in implementing the rule so school budgets in the 2007-2008 school year will not be affected. The final rule will be published in the Federal Register on Friday, December 28, 2007. A media fact sheet will also be available on the CMS website: www.cms.hhs.gov/apps/media/fact_sheets.asp.


Medicare-Medicaid-SCHIP Bill Heads to President

Wednesday, the House passed S. 2499, the Medicare, Medicaid and SCHIP Extension Act of 2007. The Senate passed the bill on Tuesday. The president is expected to sign the measure, which extends funding for the State Children's Health Insurance Program (SCHIP) through March 2009. The bill also addresses SCHIP shortfalls by making $1.6 billion available in FY 2008.

The extension bill includes a six-month moratorium that prevents the Centers for Medicare & Medicaid Services (CMS) from implementing regulations affecting Medicaid rehabilitation and school-based administration and transportation services. It also extends Transitional Medical Assistance, abstinence-only education and the qualifying individuals (QI) program through June 30, 2008. The Congressional Budget Office (CBO) estimates the cost of the bill at approximately $5.3 billion. The CBO estimate is available at http://www.cbo.gov/ftpdoc.cfm?index=8898.

VIP Series to be Released Today

FFIS will send subscribers The VIP Series later today. It includes 50-state estimates of the impact of the just-passed FY 2008 omnibus budget bill on a host of major grant programs.


Impact of Omnibus Budget Bill on Grant Programs

FFIS has completed its preliminary analysis of H.R. 2764, the omnibus budget bill for FY 2008. The bill's impact on a host of major grant programs is presented in the attached table. FFIS's projections of the state-by-state impact on a smaller number of grant programs (The VIP Series) will be completed by tomorrow and sent to subscribers.

Senate Approves Medicare, Medicaid, SCHIP Bill

Tuesday, the Senate passed the Medicare, Medicaid and SCHIP Extension Act of 2007 (S. 2499). The House is expected to approve the bill today. The measure delays the scheduled 10% cut for Medicare physicians and instead provides a 0.5% reimbursement increase through June 30, 2008.

It also extends funding for the State Children's Health Insurance Program (SCHIP) through March 2009 and addresses SCHIP shortfalls by making $1.6 billion available in FY 2008, based on data available as of November 30, 2007.

The bill includes a six-month moratorium that prevents the Centers for Medicare & Medicaid Services (CMS) from implementing regulations affecting Medicaid rehabilitation and school-based administration and transportation services. The measure also extends Transitional Medical Assistance, abstinence-only education and the qualifying individuals (QI) programs through June 30, 2008. The Congressional Budget Office (CBO) estimates the cost of the bill will be approximately $6 billion. The CBO estimate is available at: http://www.cbo.gov/ftpdoc.cfm?index=8898.

House Passes Energy Bill

Yesterday, the House approved the Creating Long-Term Energy Alternatives for the Nation (CLEAN) Act of 2007 (H.R. 6). The bill increases corporate average fuel economy (CAFE) standards to 35 miles per gallon by 2020-an increase of nearly 40% and the first increase in the standard in 30 years. President Bush is expected to sign the bill today.

Reentry Legislation Considered Again in the House

On Monday, the House adopted a concurrent resolution that makes minor technical changes to the Second Chance Act of 2007 (H.R.1593), which the House passed on November 13. The resolution was made to address Senate concerns and includes new language changing the match for state and local government reentry grants and clarifying the eligibility requirements for the elderly offender pilot program. The match was changed to a 25%-hard and 25%-soft match. The Senate could vote on the bill later this week.

H.R. 1593 authorizes a number of reentry grant programs, including a grant program for state and local governments to develop reentry initiatives and a reentry program for community and faith-based organizations to deliver mentoring and transitional services.


CMS to Release SCHIP Funding

On December 19, the Centers for Medicare & Medicaid Services (CMS) will publish in the Federal Register a notice announcing the immediate availability of additional SCHIP funding. CMS will distribute $606.9 million in federal funds to 12 states facing FY 2007 shortfalls. The funding was authorized by the U.S. Readiness, Veteran's Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007 (P.L. 110-28), which was enacted on May 29. The notice also provides details of funding to six states from the redistribution of $284.7 million in unspent SCHIP funding from FYs 2004 and 2005. Twenty-one states are expected to have federal funding shortfalls of approximately $1.4 billion, including nine states that would run out of funding starting in March 2008.

Omnibus Budget Bill Passes House

Yesterday, the House passed the omnibus appropriations bill that funds 11 appropriations bills for FY 2008 (H.R. 2764). FFIS will release national totals for major programs funded in the bill later today.

Senators Near Medicare, SCHIP Agreement

Monday, Senate leaders reached a tentative agreement to couple a six-month delay in the scheduled cut to Medicare physician reimbursement rates with an extension for SCHIP. The Senate planned to seek a unanimous consent agreement to pass the measure as soon as today, after which it would be considered by the House.


Omnibus Budget Bill Announced 

Congressional leaders will move an FY 2008 omnibus budget bill this week. The linked article from the Washington Post describes the legislation, which FFIS is currently reviewing.  http://www.washingtonpost.com/wp-dyn/content/article/2007/12/16/AR2007121601265.html?hpid=sec-nation

Senate Approves Farm  Bill

Friday, the Senate approved the Farm, Nutrition and Bioenergy Act of 2007 (H.R. 2419). An amendment that would prohibit federal, state and local governments from using eminent domain to take farmland for use as parks or open spaces was defeated. The measure will now move to conference with the House in January.

Court Halts Medicaid Pharmacy Regulation

Friday, a federal judge for the U.S. District Court for the District of Columbia blocked the Centers for Medicare & Medicaid Services (CMS) from implementing a new rule (72 Fed. Reg. 39142) changing Medicaid's reimbursement for generic prescription drugs (National Association of Chain Drug Stores v. HHS, D.D.C., No. 07-02017, preliminary injunction granted, 12/14/07). The rule implements changes in the Deficit Reduction Act of 2005 (DRA). CMS's rule defined average manufacturer price (AMP) for purposes of Medicaid pharmacy reimbursement and sought to make AMP pricing transparent so that states could use the data to determine their methods for setting reimbursement. The preliminary injunction prevents CMS from implementing the AMP rule or its data posting. CMS had planned to begin using the AMP-based reimbursement methodology in January 2008. Several members of Congress introduced legislation earlier this year (S. 1951, H.R. 3700, H.R. 3140) to amend the DRA's changes to Medicaid pharmacy reimbursement, and the issue is being considered during year-end Medicare and health care legislation.


Real ID Grant Guidance Released 

The Department of Homeland Security (DHS) has released grant guidance and application kits for two grant programs totaling more than $35 million to assist states in preparing for REAL ID implementation. REAL ID addresses a core 9/11 Commission finding to enhance the security, integrity and protection of licensing and identification systems nationwide, and was mandated by Congress. Click here for a list of frequently asked questions. For more information and the complete application kit, visit www.grants.gov.

OMB Launches USASpending.gov

On Thursday, December 13, 2007, the Office of Management and Budget (OMB) launched USASpending.gov. The website allows users to search by contracts and grants, contractor names, congressional districts and lawmakers. The data can be downloaded. Charts and rankings show to whom and where the bulk of federal dollars go. The site will post information every two weeks and provide information on whether contracts were subject to competitive bidding. Ultimately, OMB plans for agencies to send information directly to the site, so it will appear in real time. 

Farm Bill Poised to Pass Senate Today 

The 2007 farm bill, H.R. 2419, is expected to pass the Senate today. The House passed its bill in July, so once the Senate acts the bill can head to conference committee. 

Omnibus Spending Package in Works; Another CR Passes Congress cleared another continuing resolution (CR) to fund the federal government through December 21, 2007, at FY 2007 levels. The previous CR was effective through today. An omnibus bill to fund the remaining 11 appropriations bills in now in the works and is said adhere closely to the president's overall spending levels, with only $3.7 billion in additional spending. This omnibus bill maybe voted on early next week.


OMB Launches USASpending.gov 

On Thursday, December 13, 2007, the Office of Management and Budget (OMB) launched USASpending.gov. The website allows users to search by contracts and grants, contractor names, congressional districts and lawmakers. The data can be downloaded. Charts and rankings show to whom and where the bulk of federal dollars go. The site will post information every two weeks and provide information on whether contracts were subject to competitive bidding. Ultimately, OMB plans for agencies to send information directly to the site, so it will appear in real time.

President Vetoes SCHIP, Signs Head Start

On Wednesday, President Bush vetoed the latest version of the State Children's Health Insurance Program (SCHIP) reauthorization legislation (H.R. 3963). House leaders have scheduled a veto override vote for January 23, 2008. The current SCHIP extension expires this Friday (December 14), and Congress is expected to approve a third extension through next week.

Also yesterday, the president signed the "Improving Head Start for School Readiness Act of 2007" (H.R. 1429). The enacted law reauthorizes Head Start for five years and authorizes $7.35 billion in FY 2008, $7.5 billion in FY 2009 and $7.9 billion in FY 2010. For more information on the law, see FFIS Issue Brief 07-53.

House Passes Defense Authorization

Yesterday, the House passed the Department of Defense (DoD) authorization conference report (H.R. 1585). H.R. 1585 repeals a provision in the FY 2007 DoD authorization bill that allowed the president to federalize the National Guard for domestic law enforcement purposes during emergencies. It also authorizes a 3.5% pay increase for military personnel.

Congress Extends Farm Bill

House and Senate Agriculture Committee leaders announced yesterday that the current farm bill will be extended to March 15, 2008, to give Congress more time to complete the legislation.


New CBO Estimates of SCHIP Shortfalls

On Monday, the Congressional Budget Office (CBO) released new estimates of the funding needed to maintain current enrollment in the State Children's Health Insurance Program (SCHIP) for FY 2008. According to CBO, $1.4 billion is needed in addition to $5 billion in baseline funding. CBO projected that 21 states would experience a federal funding shortfall if the program were funded at the baseline amount. The CBO memo is available at http://www.cbo.gov/ftpdocs/88xx/doc8883/SCHIP_memo_12-10-07.pdf.


Request for Comments on New Federal Financial Report

The Office of Management and Budget is consolidating and replacing four existing financial reporting forms (SF-269, SF-269A, SF-272 and SF-272A) with a single Federal Financial Report (FFR). The purpose of the FFR is to give recipients of grants and cooperative agreements a standard format for reporting the financial status of their grants and cooperative agreements. Federal awarding agencies developed the FFR as part of their implementation of the Federal Financial Assistance Management Improvement Act of 1999 (P.L. 106-107). Comments must be received by January 7, 2008. A link to the request for comments in the Federal Register follows:

http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-5941.pdf


Conferees Agree on Defense Authorization

Yesterday, House and Senate conferees reached an agreement authorizing spending for the Departments of Defense (DoD) and Energy in FY 2008. H.R. 1585 also repeals a provision in the FY 2007 authorization bill that eases restrictions on the president to federalize the National Guard for domestic law enforcement purposes during emergencies.

House Passes Energy Legislation

Yesterday, the House passed the Creating Long-Term Energy Alternatives for the Nation Act of 2007 (H.R. 6). Senate Majority Leader Reid has scheduled a Senate vote for Saturday, but it is unclear whether there are 60 votes to break a threatened filibuster. The White House has issued a veto threat.

Administration Addresses Mortgage Foreclosures

Yesterday, President Bush announced a plan to address the sub-prime mortgage crisis. The plan offers assistance to homeowners at risk of foreclosure through refinancing into a fixed-rate or FHA-secured mortgage, or through freezing interest rates on certain adjustable sub-prime mortgages. The five-year freeze would apply to mortgages taken out between January 1, 2005, and July 31, 2007. The program would target homeowners who occupy their homes and can manage current payments, but could not afford rate increases, and who meet other income and credit requirements.


CMS Proposes Rule on Targeted Case Management

On Tuesday, the Centers for Medicare & Medicaid Services (CMS) published an interim final rule that affects Medicaid reimbursement for case management and targeted case management (TCM). CMS estimates that the change will reduce federal Medicaid expenditures by almost $1.3 billion over five years. States would no longer receive Medicaid reimbursement for case management services that could be paid for by third parties or other federal programs. The regulation implements section 6052 of the Deficit Reduction Act of 2005. Among the activities excluded from the definition of TCM are transportation services, day care services and administrative activities for foster care or other non-medical programs. Comments are due February 4, 2008.

The proposed rule (CMS-2237-IFC) is here.


Discrepancy in FY 2009 North Carolina FMAP

On Thursday, November 28, FFIS sent out the Federal Register Notice listing the federal fiscal year 2009 federal medical assistance percentages (FMAPs), noting that these were identical to those projected by FFIS in Issue Brief 07-41 in September 2007.  It has been pointed out that the FMAP for North Carolina listed in the Notice is 0.60 less than projected by FFIS. We believe that the Issue Brief level is correct, and the Notice reflects an error in the federal printing process. We are assisting the state in investigating.