Legislators to Push for Medicaid Relief, More Secured Licenses

April 28, 2008

State lawmakers from across the country are planning to ask Congress for relief from impending federal rules that would force states to pick up more Medicaid costs and spend billions to make drivers’ licenses more secure.

Many legislators in 23 states are also trying to figure out how to balance their books as revenues collections sag and budget deficits loom.

At the same time, states are trying to thwart seven Medicaid regulations from the Bush administration that states say would cost them $1.6 billion through next April 1, the date when the rules could finally take effect under legislation before Congress.

Many lawmakers also went Capitol Hill to stress their opposition to the rules, slated to go into effect June 30, which would clamp down on Medicaid spending for school-based treatments and transportation, rehabilitative services, graduate medical education and payment to public providers.

Many states are planning to cut back on their existing health insurance programs, but plans to expand coverage to the uninsured.

On April 23 the House voted to block the seven Medicaid administration’s regulations. However, state lawmakers who lobbied their federal counterparts discovered that the bill might be a tougher sell in the upper chamber.

Several states also want Congress to tackle the Real ID Act, the sweeping law approved by Congress in 2005 to ensure that all 50 states issue more secure driver's licenses. Real ID is expected to cost states $3.9 billion over 11 years.

Governors and state lawmakers last month called on Congress and President Bush to set aside $1 billion to cover the up-front cost of Real ID, according to separate letters from the National Governors Association and NCSL.

State lawmakers also lobbied Congress to restore $440 million in funding for a grant program for state and local agencies that seize illicit drugs and help rehabilitate juveniles commit crimes, among many other responsibilities.

Other national organizations, including the National Governors Association, the National Association of Attorneys General and the National Association of Counties, also have pressed Congress to restore funding for the grants. The state attorneys general met with President Bush and U.S. Attorney General Michael B. Mukasey last month to discuss the grants.