AARP Urges Congress to Close Dire Medicaid Loophole in Economic Recovery Proposal
Source: AARP Press Center | 2009-01-26
January 26, 2009
Contact: Jim Dau, AARP, 202-434-2560, jdau@aarp.org
AARP Urges Congress to Close Dire Medicaid Loophole in Economic Recovery Proposal
WASHINGTON – Elaine Ryan, AARP Vice President of Government Relations, today urged Congress to close a potentially costly loophole in Medicaid provisions in the current economic recovery proposal being considered by Congress.
Specifically, the measure includes a “Maintenance of Effort” definition that would require states receiving Medicaid funding to protect current eligibility standards, methodologies and procedures for the services provided. While this protection is critical, the definition fails to also protect current benefits, which could block access to home and community based services and may leave more people with costly nursing homes as their only option. Ryan’s statement follows:
“The economic recovery package being considered in Congress has several important provisions that could provide tremendous relief to people in real need while making investments in future economic growth.
“Specifically, the proposed temporary increase for Medicaid’s matching funding shows that our leaders understand that you can’t jumpstart the economy or help Americans workers without addressing their critical health care needs.
“However, the Medicaid component includes a loophole that could put thousands of long-term care employees out of work and send thousands of people with long-term care needs into more expensive nursing home settings.
“Congress must close the Maintenance of Effort loophole so that federal increases also protect the benefits, as well as eligibility, for people in need. This will NOT require any additional money. In fact, closing the loophole could serve more people with the same funding by protecting access to home and community based services instead of leaving people with more costly nursing home care as their only option.
“It’s the right – and smart – thing to do.”
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