NSBA's Letter to the House Committee on Energy and Commerce: April 8, 2008

April 8, 2008

The Honorable John D. Dingell             
U.S. House of Representatives
2328 Rayburn House Office Building
Washington, DC 20515
 
The Honorable Tim Murphy
U.S. House of Representatives
322 Cannon House Office Building
Washington, DC  20515

Re:  Protecting the Medicaid Safety Net Act of 2008, H.R. 5613

Dear Representatives Dingell and Murphy:

On behalf of the National School Boards Association (NSBA), which represents the nation’s 95,000 local school board members, I would like to thank you for your leadership in introducing the “Protecting the Medicaid Safety Net Act of 2008” (H.R. 5613). This legislation will place a much-needed moratorium on a number of Medicaid regulations, including a rule to eliminate federal Medicaid reimbursements to school districts for school-based administrative activities and transportation services provided to low-income students with disabilities.

As you know, schools play a key role in identifying children for Medicaid and connecting them to needed services in schools and the community. However, a recent regulation finalized by the U.S. Department of Health and Human Services on December 28, 2007 would cut an estimated $3.6 billion over five years in reimbursements to school districts for needed services for low-income children with special needs, many for whom school is their primary site for healthcare delivery. NSBA is concerned that this action could result in schools having to lay off nurses and social workers, curtail their referral services, and/or scale back enhancements for school buses. Furthermore, the loss of these resources will have a devastating impact on school districts’ budgets at a time when state and local resources are already in short supply.  A copy of the comments that NSBA submitted to the U.S. Department of Health and Human Services objecting to the rule are enclosed.

As one of several rules prevented from taking effect by this legislation, NSBA strongly supports the “Protecting the Medicaid Safety Net Act of 2008.” This bill would provided a much-needed moratorium on this rule until March 2009, at which time Congress and the Administration can come together to enact a permanent solution. We are convinced that this misguided rule as well as other regulations issued by the U.S. Department of Health and Human Services will not improve Medicaid program efficiency or the quality of Medicaid services. To the contrary—these regulations will only provide a major fiscal blow to many communities and will harm our most vulnerable citizens, particularly children, by preventing them from receiving the care they need.

Again, we thank you for your leadership on this important issue and look forward to working with you to move this critical legislation forward. If we can be of further assistance, please contact Chrisanne Gayl at cgayl@nsba.org or 703-838-6763.

Sincerely,

Michael A. Resnick
Associate Executive Director

Cc: Members, House Energy and Commerce Committee