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Bipartisan vote shields Medicaid funds

By Sean Lengell
April 24, 2008



House Energy and Commerce Committee Chairman Rep. John Dingell has called for a "time-out" on seven new Medicaid rules. (Associated Press)

House Republicans lined up with Democrats yesterday to brush aside a threatened White House veto and overwhelmingly approved a one-year moratorium on a series of Bush administration restrictions on how states spend federal Medicaid money.


The moratorium passed by a vote of 349-62, about 75 votes more than the two-thirds majority needed to override a veto. The measure was supported by 221 Democrats and 128 Republicans.


The White House says the restrictions are needed to rectify waste and abuse, and has accused states of using Medicaid grants for purposes other than to provide health care for seniors and the poor.


Supporters of the moratorium argue that the new regulations would shift too many costs to the states and the poor during a difficult economic time.


"Rather than cutting services to beneficiaries, this bill allows for a 'time-out' so that Congress can evaluate what is happening in the states and address any concerns," said a "dear colleague" letter dated Tuesday from Energy and Commerce Committee Chairman John D. Dingell, Michigan Democrat, and committee member Rep. Tim Murphy, Pennsylvania Republican.


"Congress has an obligation to responsibly oversee the Medicaid program, rather than eliminate services," the letter said.


The Congressional Budget Office estimated that the changes would save Medicaid more than $30 billion over 10 years, and that a one-year delay would cost $1.7 billion.


The measure now goes to the Senate Finance Committee, where Chairman Max Baucus, Montana Democrat, applauded the House for passing the bill. But the committee's ranking Republican, Sen. Charles E. Grassley of Iowa, has voiced concerns about delaying action to root out wasteful spending.


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