The U.S. House of Representatives this week struck a deal with the White House on a supplemental war-funding bill that also includes a moratorium on six of the seven unpopular Medicaid provisions.
Democrats in the House had tried to ensure all seven of the Medicaid regulations would be delayed. The seven regulations include curtailing use of the provider tax, prohibiting federal Medicaid funding for graduate education and cutting costs for case management services. Some reports have said that these Medicaid regulations will cost up to $50 billion in economic damage to states. Both the House and Senate are expected to pass the bill by next week.
President Bush has agreed to this new $250 billion measure after earlier threatening to veto any war appropriations legislation thatcost more than $108 billion.Whether the Senate will pass the bill is unclear. Nursing home providers have been adamantly against the rules, which significantly limit funding for facilities.
