HHS Secretary Leavitt says Bush administration would accept short-term moratorium on two new Medicaid regulations, while five others would take effect

HHS Secretary Mike Leavitt on Tuesday said that the Bush administration would accept a short-term moratorium on two of seven proposed Medicaid regulations to give lawmakers time to reach an agreement on the changes, CongressDaily reports (Johnson, CongressDaily, 4/29).

Under the regulations, states could not use federal Medicaid funds to help pay for physician training. The regulations also would place new limits on Medicaid reimbursements to hospitals and nursing homes operated by state and local governments and limit coverage of rehabilitation services for individuals with disabilities and mental illnesses. In addition, the bill would provide $25 million annually for efforts to fight Medicaid fraud (Kaiser Daily Health Policy Report, 4/25).

Leavitt said, "We're trying to put a package together where the five would remain and we would extend [graduate medical education funding] and [intergovernmental transfers to public hospitals] for a period where we tried to find a solution," adding, "We would defer the implementation until August, and if we're not able to do that, it would be deferred until March." Leavitt reiterated President Bush's intention to veto legislation (HR 5613) that would place a moratorium on all seven rules, saying that there are "ambiguities in the law that are being exploited in many ways" and that "need to be fixed" (CongressDaily, 4/29).

Legislation

Leavitt's statements come after the House last week approved the bill by a veto-proof majority. The legislation would block the regulations from taking effect until April 1, 2009. Senate Majority Leader Harry Reid (D-Nev.) on Tuesday tried to pass the bill by voice vote, but Sen. Tom Coburn (R-Okla.) objected. Before the bill can advance further, Reid will have to file a cloture petition, which "would consume valuable Senate floor time that Reid needs for other bills," according to CQ Today (Wayne, CQ Today, 4/29). Senate Finance Committee Chair Max Baucus (D-Mont.) on Tuesday said he wants to attach the legislation to the Iraq war supplemental spending bill.

Meanwhile, Senate Minority Whip Jon Kyl (R-Ariz.) on Tuesday said he supports a deal with the administration, saying, "They've singled out the two most controversial rules. I don't support a moratorium for graduate medical education, for example, so I'm glad they're willing to negotiate on that," adding, "I think the [Bush administration] proposal is reasonable, and hopefully it will lead the Congress to negotiate rather than trying to pass some bill out of the Congress" (CongressDaily, 4/29).