http://www.nytimes.com/2005/02/17/politics/17health.htmlGovernors in Capital to Talk About Medicaid
By ROBERT PEAR
WASHINGTON, Feb. 16 - Congress, governors and the secretary of health and human services began negotiations Wednesday on the future of Medicaid, with a view to making fundamental changes in the program to control its costs.
<snip>Senator Max Baucus of Montana, the senior Democrat on the Finance Committee, said cutbacks of that magnitude were unlikely. "I don't believe it's wise to cut Medicaid for the sake of meeting an arbitrary budget number," Mr. Baucus said at a committee hearing.
In a speech on Feb. 1, Mr. Leavitt said states should be free to provide less comprehensive benefits to "optional populations," whom they are not required to cover.
This idea raised concern among advocates for nursing home residents. Janet C. Wells, policy director at the National Citizens' Coalition for Nursing Home Reform, said: "More than half of all nursing home residents receive Medicaid coverage as optional beneficiaries. We worry that states would use the new flexibility to reduce inspection of nursing homes and the enforcement of standards."
In 2003, after the Bush administration increased Medicare payments to nursing homes, the industry promised to use the money to enhance care. In December, federal officials documented many improvements.
But Alan E. DeFend, vice president of the American Health Care Association, a trade group, said Wednesday, "If Medicaid payments are now reduced, that could disrupt the financial stability of nursing homes, threatening the improvements we've made in the quality of care."