Maryland Joins Suit Over Medicaid Rule Change

ANNAPOLIS, MD (February 29, 2008) -- Maryland Governor Martin O’Malley today announced that the state has joined the states of Maine, New Jersey and Oklahoma to legally challenge federal regulations that, if implemented, could affect as many as 200,000 Medicaid beneficiaries in Maryland.

The regulations, promulgated by the Centers for Medicare and Medicaid Services (CMS), will alter every case management service offered by the State. Approximately $66 million per year in federal Medicaid payments to the State are in jeopardy.

"One of our top priorities as Marylanders is to provide access to affordable, quality healthcare to our families," said Governor Martin O'Malley. "The CMS regulations will prevent thousands of our most vulnerable Marylanders from getting the quality healthcare they need and deserve, and we are proud to join other leading states in an effort to repeal these regulations."

The regulations, which become effective March 3, will affect every Maryland case management program. This includes home and community-based services for the elderly, children with special needs, and persons with disabilities, including those with HIV/AIDS, traumatic brain injury, and developmental disabilities.

“There are many examples where one can cite the harm created by these regulations,” said DHMH Secretary John M. Colmers. “One specific instance is the transition of individuals from institutions to the community – this will be more difficult to do. From a program-wide perspective, the regulations will undermine our ability to monitor and control the quality of the case management services we provide.”

Federal funding for a number of programs may be lost as a result of these changes and the continued existence of several programs is in jeopardy.

Federal funding for Healthy Start, a program that in fiscal year 2007 served 25,000 pregnant and postpartum women, along with children under age two, most likely will be lost. A program that helps approximately 20,000 foster care children, and children and adults in protective services, will probably meet the same fate. So will programs that provide services to 3,000 children under the age of three and 34,000 children aged three through 21 with developmental disabilities. Help provided by an ombudsman to medical assistance enrollees and high risk populations is also in danger of losing federal funds.

Medicaid currently serves about 650,000 Marylanders.

Source: Maryland Governor

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