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Klobuchar Secures Amendment to Support State Medical Services

Legislation will give Minnesota continued cost-saving effective services

February 26, 2008

Washington, D.C. – U.S. Senator Amy Klobuchar secured passage of an amendment she introduced earlier this month to ensure that Minnesota and other states receive proper reimbursement from the federal government for medical and social services provided to children, families and seniors with complex health-care needs.  Klobuchar’s legislation was recently passed by voice vote as an amendment to the Indian Health Care bill which passed the Senate today by a vote of 83-10.

The bill would place a moratorium until April 2009 on proposed federal regulations that limit the scope of federal health-care reimbursements, and it would ensure that states receive adequate funding for services known as “targeted case management.’’

“We must spend the public’s money wisely, but these new regulations would actually undercut the efforts of states to provide cost-effective preventive services to families,’’ Klobuchar said. “Congress’ intent was never to punish states for providing more efficient care.’’

Targeted case management includes services designed to provide comprehensive preventive care, such as transporting people with disabilities to and from doctor’s appointments, making sure foster-care children receive proper medical care, and managing pharmacy services for individuals with preventable illnesses.

Officials from the Minnesota Department of Human Services have estimated that counties could lose at least $45 million per year in federal reimbursements if the new regulations took effect.

Last December the Centers for Medicare and Medicaid Services (CMS) issued a regulation that would drastically cut certain federal funding streams for case management and targeted case management (TCM) services.

The regulation was issued in the wake of the Deficit Reduction Act of 2005, which limited the scope of some Medicaid reimbursements. Klobuchar said, however, that the recent CMS rule goes far beyond the provisions of the law.

The CMS recently estimated that the new rule would cut Medicaid payments to states by almost twice as much as the $760 million over five years that Congress intended.

The bill was also sponsored by a bipartisan group of other senators, including Sen. Mikulski (D-MD), Sen. Norm Coleman (R-MN) Sen. Collins (R-ME), Sen. Clinton (D-NY), Sen. Wyden (D-WA),  Sen. Voinovich (R-OH), Sen. Cardin (D-MD), Sen. Sanders (I-VT), Sen. Harkin (D-IA), Sen. Casey (D-PA).
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