Connecticut Governor Rell: Proposed Medicaid Regulations Would Harm State Budget

March 12, 2008 -- Connecticut Governor M. Jodi Rell today expressed deep concern about proposed federal regulations that if implemented could cause Connecticut to lose $418 million in Medicaid revenue over the next five years.

“Medicaid reimbursement is the largest single source of federal funds in the budget of the State of Connecticut,” Governor Rell said in a March 11 letter (attached) to United States Department of Health and Human Services (HHS) Secretary Michael Leavitt. “Connecticut uses these funds to provide coverage for the uninsured and expand options for persons with disabilities so that they may live productive lives in the community. These proposed regulations will undermine the efficient operation of proven programs in our state.”

The Governor said that the proposed regulations would negatively impact the state’s HUSKY program, which provides comprehensive health care to over 230,000 low-income children.

“As Governor, it is my goal that every eligible child will be enrolled in the HUSKY program. Part of my strategy to accomplish that goal is to provide for eligibility intake through our schools. This proposed federal regulation would curtail any federal matching funds for administrative activities in the schools in support of that effort.”

The Governor also noted that proposed federal regulations would eliminate funding for graduate medical education costs at state hospitals.

“The State has a legitimate stake in insuring the training of an adequate supply of physicians to care for our population,” Governor Rell said. “The elimination of these funds will disrupt our efforts to increase the supply of medical care professionals and will further exacerbate the financial problems of some of our hospitals.”

Governor Rell also said the proposed regulations would subject Medicaid funding for home and community based mental health services - one of the largest components of Connecticut’s Medicaid reimbursement - to complex cost reporting without any guidance by Centers for Medicare and Medicaid Services (CMS).

“I understand that Congress may address the repeal or the further delay of these regulations in the next few weeks,” Governor Rell said in her letter to Secretary Leavitt. “But if they are unsuccessful with a legislative solution to our problems, I would hope that you would instruct the regional offices of CMS to provide all of the states with further guidance on specific steps to bring their programs into compliance before you initiate any sanctions or disallowances. We will all be better served by pursuing a strategy of corrective action that achieves your goal of fiscal accountability while maintaining the viable operation of state programs in an increasingly difficult economic environment.”

Source: Connecticut Governor

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