[Source: Health and Life Sciences Law Daily, January 4, 2008 - AHLA]
In a front-page article, the New York Times (1/4, Pear) reports, "The Bush administration is imposing restrictions on the ability of states to expand eligibility for Medicaid." The restrictions prevent states "from offering coverage to families of modest incomes who, the administration argues, may have access to private health insurance." The Medicaid restrictions are similar to "those the administration placed on the State Children's Health Insurance Program in August after states tried to broaden eligibility" for that program. Previously, "states had generally been free to set their own Medicaid eligibility criteria, and the Bush administration had not openly declared that it would apply the August directive to Medicaid." However, according to some state officials in Louisiana, Ohio, and Oklahoma, the "administration's intent" was discovered during "negotiations with the federal government over the last few weeks." The Times notes that last month, the Bush administration "rejected a proposal by Ohio to expand its Medicaid program to cover 35,000 more children by "increasing the [family income] limit to three times the poverty level." Some administration officials claim that government programs such as Medicaid begin "to 'crowd out' private insurance when they cover families with incomes from 250 percent to 300 percent of the poverty level."
According to White House spokesman Tony Fratto, "This policy demonstrates the President's compassion. He wants to direct scarce tax dollars to those with the greatest needs," reports the UPI (1/4).
