Administration Medicaid Regulations Will Have Devastating Effect on Colorado

Press Release

Energy and Commerce Committee Vice Chair Diana DeGette (D-CO) today commented on a report released by the House Committee on Oversight and Government Reform on the impact of the Bush Administration's proposed Medicaid Regulations. The new report, The Administration's Medicaid Regulations: State-by-State Impacts, includes an analysis of the impact on Colorado.

"With the economy worsening, the last thing we should be doing is taking federal funds from states, especially funds that help people with their health expenses," said DeGette, who is the Vice Chair of the Committee on Energy and Commerce, which has jurisdiction over Medicaid. "The Bush Administration has proposed drastic changes in the Medicaid program that will have a devastating financial impact on Colorado and the health of our residents."

The report details the state-by-state impacts of seven regulations issued by the Centers for Medicare & Medicaid Service (CMS) that would make major, wide-ranging changes in Medicaid, the nation's largest low-income health care program.

"I am committed to reversing these draconian regulations that put the health of Coloradoans at risk. Denver has some of the premiere safety-net institutions in the Rocky Mountain West - these regulations may force many of them to close their doors to those who cannot afford care. Congress is considering a variety of actions, including a legislative fix, that would not allow the federal government from taking these vital funds away from the states," concluded DeGette.

The report finds that the state estimates of the fiscal impact of the CMS regulations are significantly higher than the $15 billion impact projected by the Administration for next five years. States estimated that the regulations would reduce federal payments to them by nearly $50 billion over the next five years, more than three times the Administration's estimate.

The report also finds:

The combined effect of the reductions in federal funds from all seven regulations represents a major fiscal blow for many states;
The regulations will reduce federal spending by shifting costs, not through greater efficiencies;
The regulations will disrupt existing systems of care for fragile populations; and
The regulations threaten the financial stability of the hospitals, emergency rooms, and clinics that treat Americans without health insurance.

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