Medicaid Reform Commission Loses Support

WASHINGTON–Support has ebbed in recent weeks for a commission
charged with developing reforms for the country’s faltering
Medicaid system.

Since the commission’s charter was signed early last month, the
idea has been given the cold shoulder by Democrats on Capitol Hill,
who say the commission would not serve as a neutral forum. And on
June 1, the National Governors Association also declined to
participate.

Under the commission charter, HHS Secretary Michael Leavitt will
appoint the group’s 15 voting members, with congressional
representation limited to non-voting members. Out of up to 23
non-voting members, the commission was to have as many as eight
policy experts designated by congressional leaders.

According to a May 26 statement from Rep. John Dingell, D-Mich.,
and Sen. Max Baucus, D-Mont., the administration’s commission falls
short of “the unbiased, independent advisory panel” first proposed
by Sens. Gordon Smith, R-Ore., and Jeff Bingaman, D-N.M. Instead,
Baucus and Dingell said they would work “to craft a credible,
responsible Medicaid policy” through the hearings process.

The NGA said it would work on Medicaid reform “as an independent
bipartisan group” and would send on its own reform recommendations
for the commission to consider.

In talks to resolve differences over the federal budget earlier
this year, lawmakers agreed to form the commission to review the
Medicaid program’s goals and find ways to put it back on firm
financial footing. In its first report, due Sept. 1, the commission
is to recommend $10 billion in Medicaid savings over five years, to
be implemented in 2007. A report due at the end of 2006 would
address the program’s long-term sustainability.

Medicaid, which provides health coverage for 53 million poor,
aged and disabled, will cost federal and state governments an
estimated $330 billion this year, and has surpassed Medicare to
become the country’s largest health care program.