The National Governors Association has sent a letter to the Democratic and Republican leaders of Congress opposing a proposed Medicaid policy change that the NGA says will result in a $5 billion cut in federal Medicaid spending over five years. In a separate letter, the NGA asked Congress “to immediately pass legislation” to prevent states from experiencing shortfalls in their State Children’s Health Insurance Program this year, some as soon as March. The proposed Medicaid policy, with which the Bush Administration is proceeding “without any input from Congress or governors,” would cut reimbursement to public providers and shift the cost to the states in a reversal of long-standing policy, according to the NGA. “These proposals would further impede our progress in implementing reform options and expanding affordable health insurance coverage,” said the letter.
The governors in the 13 states that will run out of SCHIP funds said they need immediate assistance and cannot wait until Congress reauthorizes the program, reports The New York Times. President Bush, however, has stated that he wants to continue SCHIP’s current level of funding of $5 billion with an “additional allotment” of $4.8 billion over five years. But many states have stated that they intend to expand eligibility for SCHIP as part of their initiatives to increase healthcare coverage. A Congressional Budget Office report finds that states require $14.1 billion in SCHIP funds to prevent shortfalls. The NGA’s letter states that, “Congress must also provide sufficient funding to fully meet each state’s healthcare coverage objectives for SCHIP.”
