Pending Medicaid rate regulation raises GOP concerns

An internal memo from the Republican Policy Committee to GOP senators and their staffs describes the pending regulation as “Washington … planning to impose new reimbursement mandates on state Medicaid programs.”

“It’s possible – perhaps even likely – that on top of the mandates on states not to constrain eligibility standards, HHS will now pile on another federal mandate when it comes to reimbursement levels,” the memo says.

The allegation fits into the GOP argument that the law’s expansion of Medicaid to more than 15 million more people will wallop state budgets.

HHS did not immediately respond to a request about the regulation’s intent.

Sen. Charles Grassley (R-Iowa) grilled HHS Kathleen Sebelius about the issue at a hearing Wednesday on healthcare reform’s one-year anniversary, but she was not prepared to answer. She said she would do so in writing shortly.

Grassley’s comments didn’t go as far as the policy committee’s, but he shared similar concerns.

“This part of the law has been in statute since 1968 and hasn’t been amended in 22 years,” Grassley said during the hearing. “For the government to decide now, facing litigation, to write regulations that could significantly impact payments to providers in Medicaid and therefore state budgets, demands transparency from the government. Congress, states and the public need to be well-informed about these plans.”