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FOR IMMEDIATE RELEASE
February 19, 2005
CONTACT: Chris Paulitz

CMS RESPONDS TO SENATOR HUTCHISON REQUEST FOR ACTION ON HOSPITAL FUNDS REIMBURSEMENT
Senator announces program to begin this spring in “Mr. South Texas” 2005 acceptance speech

WASHINGTON, DC -- Senator Kay Bailey Hutchison (R-TX) today announced that the Centers for Medicare and Medicaid Services (CMS) will begin a backlogged healthcare reimbursement program this spring. CMS acted after Sen. Hutchison and border state Senators pressed this week to activate the delayed program.

The program should already be providing up to $50 million in Fiscal Year 2005 to help Texas hospitals cope with unpaid bills from illegal immigrant care.

“I am encouraged to announce these positive and timely developments on this critical healthcare funding issue,” Sen. Hutchison said. “Texas healthcare providers deserve this relief they are entitled to by law and patients affected by this costly problem deserve quality care.”

CMS Administrator Mark McClellan’s response came after Sen. Hutchison urged rapid implementation of the hospital reimbursement program for emergency care to illegal immigrants. The program has been delayed for over six months. Sen. Hutchison spoke directly with Dr. McClellan Thursday regarding the matter, following up on a February 15 letter he received from Sen. Hutchison, Sen. Dianne Feinstein (D-CA) and Sen. Jon Kyl (R-AZ).

Sen. Hutchison originated the letter after CMS acknowledged that it has not yet set a starting date for the program mandated by law to start on September 1, 2004.

Timely action on this issue is critical because healthcare providers are required by law to provide emergency care to illegal immigrants, incurring all costs as the delay continues.

Texas hospitals statewide are burdened by more than $150 million in uncompensated emergency care for illegal immigrants forcing hospitals to cut back services and affect the care available to Texas communities.

The Medicare Prescription Drug and Modernization Act signed into law on December 8, 2003 included the reimbursement program that is set to provide $250 million annually to help hospitals provide costly care to illegal immigrants.

Sen. Hutchison announced the healthcare funding news as she accepted the “Mr. South Texas” for 2005 award in recognition of her decade-long commitment to economic and quality of life improvements in the region.

“I am honored and humbled to be recognized with such a prestigious award. And I am proud to carry forward initiatives to help Texas communities prosper today, as well as for future generations,” Sen. Hutchison said. “Previous award recipients have served as an inspiration to me. I look forward to the work ahead helping our communities thrive — here in South Texas and across our great state.”

In an August 2004 announcement, the Washington’s Birthday Celebration Association (WBCA) named Sen. Hutchison “Mr. South Texas” for 2005. According to the WBCA, since 1952 the group has bestowed the esteemed award upon individuals each year for their contributions to the growth and development of the area. Previous recipients of the award include then-Governor George W. Bush, former Senator Phil Gramm, former Lieutenant Governor William P. Hobby, and the Honorable Anne Armstrong. Sen. Hutchison will be inducted into Los Caballeros de la Republica del Rio Grande, and presented with the Caballero Medallion at the Mr. South Texas Luncheon today.

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