National Alliance on Mental Illness
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Background on the Medicaid Moratoria Legislation
April 21, 2008
Combined the 7 regulations are projected to drain $1.65 billion in federal matching funds for state Medicaid programs in 2008 and 2009. As result, Congress must offset the “expenditure” associated with stopping the regulations from going into effect. To help reach that number, the bill would require more scrutiny of beneficiary eligibility through heightened access to financial records. In addition, the bill authorizes $25 million in additional funding to crack down on Medicaid fraud and abuse.
Of most importance to NAMI are the regulations impacting services under the Rehabilitation Option and Targeted Case Management (TCM). Currently there is a moratorium in place for Rehabilitation that expires on June 30. By contrast, the interim final regulations on TCM have been published and went into effect last month. The other regulations covered under HR 5613 include funding for graduate medical education, school-based services for children and financing of public hospitals