Health and Human Services Committee Home

February 25, 2008

Dear Senator Reid, Senator McConnell, Speaker Pelosi, and Representative Boehner:

The nation’s governors call on Congress to take immediate action to delay implementation of the pending Medicaid regulations issued by the Centers for Medicare and Medicaid Services (CMS) that will shift an estimated $13 billion in federal costs to states.  Timely action by the Congress is necessary to avert disruptions in coverage that may otherwise be unavoidable. 

While states are committed to upholding their responsibility to Medicaid, we have significant concerns that the actions taken by CMS will effectively end the federal government’s participation in many crucial components of the Medicaid program and inappropriately shift those costs to states.  It has been longstanding policy of the National Governors Association to object to such cost shifts.  

The proposed Medicaid regulations also are a departure from past practices and reflect new and unsupported interpretations in Medicaid law.  Many of the rule changes were rejected by Congress when the Deficit Reduction Act of 2005 (DRA) was considered.  Furthermore, they are particularly onerous given the difficult fiscal situation in many states.

Congressional action is needed to prevent the rules from becoming final and to provide for a more appropriate and thoughtful review by Congress of these important policy changes.  We look forward to working with all of you to ensure that federal actions prioritize the partnership between states and the federal government.

Sincerely,