New Rule Likely to Cut Health Care for the Poor

The Bush administration is continuing its push to finalize hundreds of new regulations in an effort to cement its legacy before the new administration takes power on Jan. 20 next year. Also called "midnight regulations," these rules tend to get rammed through the regulatory review process before the lights go out on an administration, regardless of process violations or self-imposed cutoffs. The Reg team here at OMB Watch is doing a fantastic job tracking these regulations, the vast majority of which benefit industries and corporations by relaxing or eliminating economic, environmental, health, and safety rules. Yet another example appeared in the New York Times on Friday, this time targeting health care for low-income Americans. Robert Pear reports: WASHINGTON — In the first of an expected avalanche of post-election regulations, the Bush administration on Friday narrowed the scope of services that can be provided to poor people under Medicaid's outpatient hospital benefit. Public hospitals and state officials immediately protested the action, saying it would reduce Medicaid payments to many hospitals at a time of growing need. The new rule conflicts with efforts by Congressional leaders and governors to increase federal aid to the states for Medicaid as part of a new economic action plan. The Bush administration claims it is just trying to pay for services "more accurately and appropriately," while others say this is significant change to a long established Medicaid policy - that states get to define hospital outpatient services. Even if the Bush administration claim is true (and I've got my doubts), the practical effect is going to be fewer services for low-income folks covered through Medicaid. That's a shame.
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