Medicaid Regulations Moratoria/Physician Ownership Restrictions Advance
On May 22, 2008, the Senate approved a version of the fiscal year (FY) 2008 emergency supplemental appropriations bill, H.R. 2642. The Senate bill would extend a current moratorium on implementation of certain Medicaid regulations and block additional rules through April 1, 2009. The rules affected by the legislation involve: payments to public safety net institutions; coverage of rehabilitation services for people with disabilities; outreach and enrollment in schools and specialized medical transportation to school for children covered by Medicaid; graduate medical education payments; coverage of hospital clinic services; case management services; state provider tax laws; and appeals filed through HHS. In addition, the bill would eliminate, for new hospitals with physician ownership, the "whole hospital" exception to the Stark law's referral prohibition, and would add, for existing hospitals with physician ownership, significant additional conditions to that exception. The version of the measure approved by the House does not include specialty hospital provisions. The two versions will need to be reconciled before being sent to the President, who has threatened to veto both the House and Senate versions.
