LIHEAP Funds Released

On February 22, 2008, the administration announced distribution of $40 million in Low Income Home Energy Assistance Program (LIHEAP) contingency funds to 11 states. States receiving funds were those in which at least 20% of low-income families use home heating oil. A total of approximately $120 million in LIHEAP contingency funding remains available for future use.

The allocations are available at:
http://www.acf.hhs.gov/news/press/2008/liheap_allotments_40m.html.

CMS Issues Host of Final, Proposed Rules

In today's Federal Register, the Centers for Medicare &Medicaid Services (CMS) published the final rule on Medicaid provider taxes (CMS-2275-F). The rule implements a provision of the Tax Relief and Health Care Act of 2006 that lowered the permissible provider tax rate to 5.5% from January 1, 2008, until October 1, 2011. In addition, the rule revises the indirect hold harmless threshold and clarifies language regarding permissible classes of health care services that may be taxed. Provisions of the rule take effect on April 22, 2008. However, CMS indicates it will not consider a state to be out of compliance with the revision to the definition of permissible classes until October 1, 2009.

CMS also issued two new proposed rules implementing provisions of the Deficit Reduction Act. CMS-2232-P is intended to provide states with the ability to offer alternative benefit packages called "benchmark plans," design specific benefit packages that target the needs of different populations and provide wrap-around and additional benefits.

CMS-2244-P addresses new flexibility granted to states to adjust premiums and cost-sharing policies for certain populations.

Comments on the benefit-design and cost-sharing regulations are due March 24, 2008.

The State Flexibility in Benefit Packages NPRM  can be viewed at: http://www.cms.hhs.gov/MedicaidGenInfo/Downloads/CMS2232P.pdf.

The Premiums and Cost Sharing NPRM can be viewed at: http://www.cms.hhs.gov/MedicaidGenInfo/Downloads/CMS2244P.pdf.

The provider tax regulation can be viewed at: http://www.cms.hhs.gov/MedicaidGenInfo/Downloads/CMS2275F.pdf.

CMS Publishes Funding Levels, Deadlines for SHIP Grants

On February 15, 2008, the Centers for Medicare & Medicaid Services (CMS) released information on the funding levels and deadlines for submitting program plans and budgets for 2008 State Health Insurance Assistance Programs (SHIPs) Basic and Supplemental Funding Awards. For FY 2008, Congress approved $39.3 billion for SHIPs. The Medicare, Medicaid and SCHIP Extension Act of 2007 provided an additional $15 million. The grants fund state efforts to support a network of local programs to help beneficiaries understand and use their Medicare benefits. Program narratives and budgets are due April 1, 2008. Additional information is available at http://www.cms.hhs.gov/Partnerships/10_SHIPS.asp.


CRS Releases Estimates of Administration Medicaid/SCHIP Proposals

Yesterday the Congressional Research Service (CRS) released a report analyzing the administration's budget proposals for Medicaid and SCHIP (attached). 

Merck Settles With Govt Over Medicaid Rebates

In one of the biggest U.S. health care fraud settlements ever, Merck & Co. will pay $671 million to settle claims it overcharged the government for four popular drugs and bribed doctors to prescribe its drugs. The alleged overcharges, dating back to the mid-1990s, involved Medicaid programs in the District of Columbia and every state but Arizona, as well as federal health insurance programs at agencies including the Department of Defense and Veterans Administration.

Congress Clears Stimulus Bill

The Senate yesterday approved an economic stimulus package (H.R. 5140). Senate changes  to the House-passed bill expand eligibility for tax rebates to include low-income senior citizens, disabled veterans and survivors of veterans. Following Senate passage, the bill moved back to the House, where it passed. The bill now goes to the president for his signature.

House Passes Higher Ed Bill

On Thursday, the House approved the College Opportunity and Affordability Act (H.R. 4137), which reauthorizes the Higher Education Act (HEA). The House bill includes a "maintenance of effort" (MOE) mandate on states (see FFIS Issue Brief 07-55). In July, the Senate approved its version of the reauthorization (S. 1642), which does not include the mandate. The Higher Education Act extension expires March 31, 2008.

House Approves Mental Health Parity Extension

Thursday, the House passed H.R. 4848, extending for one year the mental health parity law. The measure would continue the 1996 law (P.L. 104-204) that prohibits health plans that offer health coverage from establishing different lifetime or annual dollar limits for mental health treatment than those imposed for treatment of other illnesses.

New TANF Final Rule

The Temporary Assistance to Needy Families (TANF) final rule, which implements the statutory changes enacted in TANF reauthorization in the Deficit Reduction Act of 2005, was published today in the Federal Register. The link to the 58-page document: http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/08-455.pdf.
  
Since June 29, 2006, state TANF programs have been subject to an interim final rule. The final rules goes into effect on October 1, 2008, and states can use the current definitions of maintenance of effort (some MOE definitions are changed under the final rule) to get credit for the caseload reduction credit through 2009. 

President's FY 2009 Budget Released 

The president's budget for FY 2009 was released today. The attached chart shows its impact on major grant programs of interest to state and local governments.

DHS Announces Application Guidance

The Department of Homeland Security (DHS) announced the release of application guidance for 14 federal grant programs, as well as an overview and fact sheet.

Senate Stimulus Vote Moved to Next Week

Senator Reid announced last night that the Senate will not vote on a stimulus package until next week. The Senate is expected to take up a series of amendments including the Senate Finance Committee plan; an proposal that includes funding for unemployment benefits, mortgage revenue bonds and food stamps; an amendment to expand heating and cooling assistance and a vote to extend rebates to low-income seniors and disabled veterans.

Senate Committee Holds Hearing on Transportation Commission Report

Yesterday, the Senate Environment and Public Works Committee heard testimony from the National Surface Transportation Policy and Revenue Study Commission. The Commission recommends reducing the number of programs in the federal surface transportation bill to 10 (from approximately 108 currently authorized). It also recommends new revenue, including a gas tax increase, increased tolling, congestion pricing and other user-related fees.

Senators to Seek Emergency Funding for Byrne Grants

Yesterday, a bipartisan group of senators said they would seek $660 million to fund the Edward Byrne Memorial State and Local Law Enforcement grants program, possibly through a FY 2008 emergency war spending bill, which is expected in March. The Byrne grant program was cut by 67% in the FY 2008 omnibus appropriations bill, from $520 million to $170 million.