House Bill Would Delay Medicaid Regs

On Friday, March 14, House Energy and Commerce Committee Chairman Dingell and Congressman Tim Murphy introduced H.R. 5613, "Protecting the Medicaid Safety Net Act of 2008," to delay until April 1, 2009, seven Medicaid regulations that would result in a cost shift to states. The Congressional Budget Office estimates a $20 billion reduction in federal Medicaid expenditures over five years as a result of the regulations. A recent report by the House Committee on Oversight and Government Reform, puts the savings closer to $50 billion.

House, Senate Adopt Budget Resolutions

The Senate adopted its budget resolution last Friday after voting on dozens of amendments in a 15-hour session. The House had adopted its version Thursday evening.

Both resolutions would allot billions more in discretionary spending for the 12 annual appropriations bills than the $991.6 billion proposed by the president, with most of the added funds targeted to domestic programs such as education and infrastructure. The plans also assume that 2001 and 2003 tax cuts will expire as scheduled in 2010 or be fully offset if extended.


House Extends HEA

Yesterday, the House of Representatives passed a one-month extension of the Higher Education Act of 1965, which was approved by the Senate on March 7 (S. 2733).  Congress now has until April 30 to resolve differences between the House- and Senate-passed reauthorization bills. A primary point of contention is a "maintenance of effort" (MOE) mandate on state higher education spending.

Congress Extends Farm Bill

The House and Senate voted to extend the 2002 farm bill until April 18. Congressional leaders and the administration have agreed to a $10 billion increase in the new farm bill; however, negotiations over spending allocations and proposed offsets continue.

CMS Releases SCHIP Enrollment Data

The Centers for Medicare & Medicaid Services (CMS) released new enrollment data for the State Children's Health Insurance Program (SCHIP). CMS reported that 7.1 million children were enrolled in SCHIP at some point during federal fiscal year 2007. This represents a 5.9% increase over the previous year. The enrollment numbers are based on data submitted by states and are available at www.cms.hhs.gov/NationalSCHIPPolicy.


House and Senate Committees Approve Budget Plans

The House and Senate budget committees have approved their respective budget plans for FY 2009. Passed on party-line votes, both five-year plans would balance the budget in FYs 2012 and 2013 while providing a one-year patch of the alternative minimum tax (AMT). The House plan calls for the AMT patch to be offset through the budget reconciliation process. The Senate bill creates a reserve fund to provide up to $35 billion in additional stimulus spending should the economic slowdown continue. The Senate bill also extends some of the expiring 2001 and 2003 tax cuts, including marriage penalty relief, the child tax credit and the 10% tax bracket. Both plans are expected to be debated in their respective chambers next week.

SAMHSA Releases State-by-State Report

The Substance Abuse and Mental Health Services Administration (SAMHSA) has released a new report with state-by-state information on substance use and mental health problems. The report is available at http://www.oas.samhsa.gov/2k6State/toc.cfm. State-specific data can be found at http://oas.samhsa.gov/statesList.cfm.


CMS Clarifies Tamper-Proof Prescription Requirement

Beginning April 1, 2008, all written prescriptions for Medicaid recipients must be on paper with at least one tamper-resistant feature as outlined by CMS and defined by each state. Beginning October 1, 2008, these prescriptions must be on paper that meets all three baseline characteristics of tamper-resistant pads. CMS has outlined the three baseline characteristics as those that: (1) prevent unauthorized copying of a completed or blank prescription form; (2) prevent the erasure or modification of information written on the prescription by the prescriber; or (3) prevent the use of counterfeit prescription forms.Electronic prescriptions, faxed prescriptions and prescriptions sent over the telephone are exempt from this requirement. 

Additional information on CMS's requirements can be found at: http://www.cms.hhs.gov/DeficitReductionAct/30_GovtInfo.asp

House Passes Mental Health Parity Bill

Yesterday, the House yesterday passed H.R. 1424, which would require health plans offering mental health coverage to provide the same benefits for mental illness as they do for other medical conditions. It also would prevent insurers from requiring larger co-payments or imposing lower reimbursement ceilings for mental health conditions.  The estimated cost to the federal government is $4.3 billion over 10 years. One offset would increase the size of prescription drug rebates that pharmaceutical companies must provide to state Medicaid programs to 20.1% from December 31, 2008, through January 1, 2015. The Senate passed its version of mental health parity legislation, S. 558, in September 2007.


House Report Estimates Large Fiscal Impact of New Medicaid Regs

Yesterday, the House Oversight and Government Reform Committee released a report detailing the impact of seven Medicaid regulations issued by the Centers for Medicare & Medicaid Service (CMS). The report, The Administration's Medicaid Regulations: State-by-State Impacts, is based on information submitted by 43 states and the District of Columbia. The report estimates that the cost of the changes could reach nearly $50 billion over five years, rather than the $15 billion impact projected by the Office of Management and Budget. The report, is available at http://oversight.house.gov/story.asp?ID=1778.

Real ID Grant Deadline Extended

The Department of Homeland Security has extended the application deadline for FY 2008 Real ID demonstration grants to April 4, 2008. Information and guidance can be found at www.grants.gov.