Lincoln Proposal Would Cut Medicaid Red Tape

FOR IMMEDIATE RELEASE: September 08, 2005
Contact: Drew Goesl (202)224-6436

Washington – U.S. Senator Blanche Lincoln (D-Ark.) today introduced a measure to respond to the dire public health care crisis created by Hurricane Katrina.
"Hurricane Katrina has caused a humanitarian crisis for the people of Louisiana, Mississippi, and Alabama," Senator Blanche Lincoln said. "Unfortunately, this horrific storm has also caused a public health care crisis for neighboring states like Arkansas. Therefore, we must do all we can to make sure our displaced neighbors can still rely on dependable programs such as Medicaid for critical services. Now is the time to ensure these Americans, as well as the health care providers serving them, are protected from further harm from the consequences of this tragedy."
Behind the state of Texas, Arkansas is receiving the greatest influx of displaced citizens due to Hurricane Katrina.

Lincoln has led efforts in the Senate to ensure that the additional strains being placed on Arkansas’ health care facilities are absorbed in a way that doesn’t compromise patient services or leave Arkansas’ health care providers without adequate funding to treat these new patients.

Under current Medicaid law, individuals are only eligible for program benefits as residents of their home state because program services are paid for by states in conjunction with federal matching dollars. Lincoln said this has left services for patients in states directly affected by Katrina and in those hosting evacuees in jeopardy. Without changes to current law, displaced Medicaid beneficiaries could face delays in establishing their eligibility for Medicaid, putting significant strains on health care providers and state budgets.

Lincoln said she introduced her "Temporary Disaster Relief for Medicaid" proposal to cut much of this government red tape and to allow Katrina survivors to receive needed health care services without delay. Her proposal would: ensure that low-income Katrina survivors are quickly enrolled in Medicaid wherever they find refuge; ensure that providers enrolled in Medicaid who treat these survivors are reimbursed for their services; and ensure that the directly affected states (Alabama, Louisiana, Mississippi) and indirectly-affected states (including Arkansas) are protected by the federal government from the unexpected costs stemming from this rapid increase in Medicaid enrollment.

http://lincoln.senate.gov/press_show.cfm?id=245418