http://motherjones.com/politics/2011/05/medicaid-cuts-repeal-republicansAfter first placing Paul Ryan's drastic Medicaid-slashing proposal on the negotiating table, Republicans are lining up behind a yet another plan to curb the program's benefits and payments—a smaller-scale change that's likelier to pass Congress. Republicans in both houses introduced bills on Tuesday that would eliminate federal regulations that prevent states from trimming their Medicaid rolls or erecting new barriers to enrollment.
In February, Mother Jones broke the news that Republicans planned to target these so-called Maintenance of Effort (MOE) requirements, which the federal government put in place after giving states a new injection of Medicaid money in 2009. Now they've made good on their promise. The State Flexibility Act—sponsored by Sen. Orrin Hatch (R-Utah) in the Senate and Reps. Phil Gingrey (R-Ga.) and Cathy McMorris Rodgers (D-Wash.) in the House—would give states significantly more leeway in kicking beneficiaries to the curb, reducing payment to nursing homes, and making other reductions to shrink budget gaps.
"Take the handcuffs off the governors," Gingrey (R-Ga.) said at the bill's unveiling on Tuesday, arguing that current law prevents the states from "ferreting out waste, fraud, and abuse, finding out if someone's falsified information on income…maybe even if they're illegal immigrants." The Congressional Budget Office has estimated that the bill would save $2.8 billion over five years.
The State Flexibility Act would not go as far as the Ryan plan, which proposes a massive overhaul of the Medicaid funding structure. But it would allow states to take a knife, if not a hatchet, to the program. Gingrey said that only 300,000 beneficiaries would be eliminated from the program under the bill, but he and his colleagues admitted that they didn't have an independent CBO estimate to confirm the number.
More at the link --