Senate Approves SCHIP Reauthorization

Yesterday, the Senate approved S. 275, which reauthorizes the State Children's Health Insurance Program (SCHIP) for four-and-a-half years and spends an additional $32.8 billion. The bill would provide health insurance for children in families who earn under 300% of the federal poverty level but too much to qualify for Medicaid. Although the House passed its reauthorization (H.R. 2) on January 14, House Speaker Pelosi said that the House would take up the Senate bill next week. The two versions are similar,but the Senate version removes the five-year waiting period for coverage of legal immigrant pregnant women and children, and creates a payment advisory commission on Medicaid. The Senate bill also wouldallow states to provide dental benefits as a wrap-around service for children enrolled in private coverage. The Senate bill would give states the option of documenting an applicant's citizenship at the time of application or later, through the applicant's Social Security number.

House Passes Stimulus Bill

Yesterday, the House passed an $819 billion economic stimulus bill (H.R. 1) that contains $275 billion in tax cuts and almost $545 billion in domestic spending. It would direct more than $300 billion in aid to states to help rebuild schools, provide health care to the poor, and reconstruct highways and bridges. Specific to transportation, the House passed by voice vote an amendment to increase transit funding by $3 billion, bringing the total for transit funding in the bill to $12 billion.

House Fails to Pass Digital TV Delay

Yesterday, the House failed to pass a bill (S. 328) to delay the digital television (DTV) transition date from February 17 to June 12, 2009. House leaders will consider whether to take the bill to the House Rules Committee for a rule for debate. This would allow the House to reconsider the bill for passage by a simple majority. The
Senate passed its version on Monday.

Senate Votes to Delay Digital TV Transition

The Senate voted Monday to extend the digital television transition date from February 17 to June 12, 2009. The bill, S. 328, parallels a House bill that was scheduled for markup last week. House Energy and Commerce Committee Waxman is expected to seek a vote this week.

CBO Releases House Stimulus Cost Estimate

The Congressional Budget Office (CBO) released its cost estimate of H.R. 1, the American Recovery and Reinvestment Act of 2009. CBO estimates the bill will cost the federal government $170 billion in FY 2009, $356 billion in FY 2010 and $174 billion in FY 2011. A copy of the report is available at http://cbo.gov/ftpdocs/99xx/doc9968/hr1.pdf.

GAO Releases Update on Pressures Facing State and Local Governments

The Government Accountability Office (GAO) released its Update of State and Local Government Fiscal Pressures. GAO prepared the report to inform Congress of the fiscal pressures facing state and local governments and principles
to consider in determining how to effectively target temporary assistance to states, especially for Medicaid. The report is available at http://www.gao.gov/new.items/d09320r.pdf.

Comment Period Announced for Fostering Connections to Success and Increasing Adoptions Act

The Department of Health and Human Services (HHS) Administration for Children and Families (ACF) published in the Federal Register a request for public comment related to implementation of the Tribal Title IV-E plan as authorized in the Fostering Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351). The law, as amended, permits federally recognized Indian tribes and tribal organizations to operate a title IV-E program in the same manner that states are currently permitted, beginning October 1, 2009. Information concerning the request for public comment and opportunities for tribal consultation can be accessed at http://edocket.access.gpo.gov/2009/pdf/E9-1338.pdf.
All written comments must be received on or before April 27, 2009.

CMS Publishes Medicaid DSH Allotments

In yesterday's Federal Register, the Centers for Medicare & Medicaid Services (CMS) published the final state allocationsfor Medicaid Disproportionate Share Hospital (DSH) payments for FY 2009. The notice can be viewed at
http://frwebgate3.access.gpo.gov/cgi-bin/PDFgate.cgi?WAISdocID=06631720261+5+2+0&WAISaction=retrieve.

CMS Reopens Comment Period on Medicaid Options for Premiums
and Cost Sharing


Today, CMS published a notice in the Federal Register that delays for 60 days the effective date of the final rule regarding premiums and cost sharing for certain enrollees. The final rule (73 FR 71828), originally published November 25, 2008, implemented provisions of the Deficit Reduction Act of 2005 and the Tax Relief and Health Care Act of 2006, providing state Medicaid agencies increased flexibility to impose premium and cost-sharing requirements on certain Medicaid recipients and address cost sharing for non-preferred drugs and non-emergency care provided in a hospital emergency department. Comments are due on February 26, 2009.

House Democrats Propose Economic Stimulus

Yesterday, House Democrats unveiled an $825 billion spending and tax plan to spur economic growth. The $550 billion spending portion of the bill includes about $318 billion for state and local governments, including $87 billion for a temporary increase in the Medicaid matching rate.  Food stamp benefits would increase by 13% and $36 billion is included to extend and expand unemployment benefits. The infrastructure portion includes $30 billion for highway construction, $10 billion for mass transit and rail and $19 billion for clean water, flood control and environmental restoration projects. House leaders said they plan to consider the package in committee next
week.

FFIS is currently analyzing the proposal. Of note, the specifics surrounding Medicaid have not yet been released, pending a final score from the Congressional Budget Office. FFIS has been told that the 4.8% FMAP increase that was included in summaries of the proposal may not be the final figure.

Senate Finance Approves SCHIP Proposal

Yesterday, the Senate Finance Committee approved a proposal to reauthorize the State Children's Health Insurance Program (SCHIP). The proposal would increase funding by $31.5 billion over four and a half years and make changes to the state allotment formula. It would phase out SCHIP coverage for childless adults and parents. The additional funding is offset through an increase in tobacco taxes. The committee approved several amendments, including one that would remove the five-year waiting period in the current law and give states the option to provide SCHIP
coverage to low-income, uninsured, legal immigrant children and pregnant women who have been in the United States for less than five years. Similar language was included in the House-passed bill earlier this week (H.R. 2). The committee also approved an amendment that would give states the option to allow children who lack dental coverage in their private health insurance to receive dental coverage through SCHIP, without dropping their private plan. Other amendments were accepted that require states to check on legal immigrants' status so that those with expired visas do not participate in the program and to define a "school-based health center." The bill is expected to be considered by the full Senate this month.

HHS Delays ICD-10 Implementation

Yesterday, the Department of Health and Human Services (HHS) issued a final regulation that would give health care plans and providers until October 2013 to adopt a new health care coding system, the International Classification of Diseases,
Tenth Revision (ICD-10). Previously, HHS had proposed that the new system be adopted by October 2011. HHS also issued a related final rule updating standards for electronic health care transactions under the Health Insurance Portability and
Accountability Act (HIPAA). According to the Centers for Medicare & Medicaid Services (CMS), HIPAA "covered entities" such as health plans, health care clearinghouses and certain health providers must begin using the updated standard on January 1, 2012. Small health plans must comply on January 1, 2013. The final rules are scheduled to be published in the January 16 Federal Register. A fact sheet is available at:

http://www.cms.hhs.gov/apps/media/press/factsheet.aspCounter=3407&intNumPerPage=10&checkDate=&checkKey=&srchType=1&numDays=3500&srchOpt=0&srchData=&keywordType=All&chkNewsType=6&intPage=&showAll=&pYear=&year=&desc=&cboOrder=date 

House Stimulus Details May be Released Today

The House of Representatives announced details of its economic recovery bill today. 
The $850 billion package of tax cuts and spending provisions will be considered by the relevant House committees next week. The proposal includes $85 billion for infrastructure, $80 billion for state education programs and $90 billion for
Medicaid. A summary of the proposal can be found here.

House Passes SCHIP Bill; Senate Finance Committee Scheduled
to Consider Proposal

Yesterday, the House passed the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA, H.R. 2). The bill would increase funding by about $33 billion over four and a half years through September 30, 2013. It is estimated to provide coverage for an additional four million children. The measure resembles proposals considered during the previous Congress. It removes the five-year waiting period for coverage for legal immigrant children, adds new options to allow states to comply with existing Medicaid citizenship documentation rules and applies this citizenship requirement to SCHIP. The House bill is funded by a 61-cent increase in the tobacco tax and through provisions affecting physician-owned hospitals.

The Senate Finance Committee is scheduled to consider SCHIP reauthorization today. The proposal resembles the House-passed legislation. Several amendments are expected to be offered during the committee meeting, addressing coverage
for legal immigrant children, funding and citizenship documentation requirements.

The Congressional Budget Office cost estimate for H.R. 2 is available at
http://www.cbo.gov/ftpdocs/99xx/doc9963/hr2.pdf.

The Senate Finance Committee proposal information is available at
http://finance.senate.gov/press/Bpress/2009press/prb011309.pdf.