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Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ), Chairman of the House Energy and Commerce Subcommittee on Health, announced today that seven new Medicaid regulations issued by the Centers for Medicare and Medicaid Service (CMS) would cost the state of New Jersey $28.9 million this year and $357.3 million over five years.
The findings were unveiled today in a report from the House Committee on Oversight and Government Reform entitled The Administration's Medicaid Regulations: State-by-State Impacts. The complete report and more information about the state-by-state impacts are available online at www.oversight.house.gov. The New Jersey one-page summary is attached above.
When CMS announced these seven new regulations, it said that the regulations would reduce federal Medicaid payments to states by a total of more than $15 billion over the next five years. According to the report's executive summary, the report finds that the state estimates of the fiscal impacts of the regulatory changes are significantly higher than the $15 billion impact projected by the Administration. According to the states who responded to the Committee, the regulations would reduce federal payments to them by $49.7 billion over the next five years, more than three times the Administration's estimate.
"As the economy continues to slump, more New Jersey families will be forced to turn to Medicaid for their health care coverage," Pallone said. "This report shows the devastating impact the Bush administration's Medicaid directives would have on states like New Jersey, which are already having a difficult time meeting their obligations.
"At a time when Governor Corzine is having to freeze state spending to close the state's budget shortfall, it is simply unreasonable for the Bush administration to force New Jersey to either come up with an additional $28 million for its Medicaid program or to cut some of its current services," Pallone continued. "I would hope this report shows the administration that these regulations are unreasonable and should be withdrawn. If not, Congress is going to have to act."
The New Jersey congressman addressed these seven new Medicaid regulations at two hearings last week. At a hearing on Tuesday before his Health Subcommittee, Pallone said the regulations "would collectively gut the Medicaid program and roll back coverage for millions of Americans." He said some of the most egregious regulations are targeted towards health care services for low-income and disabled children.
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