Hatch bill puts states back in control of their budgets by repealing costly Medicaid MOE requirements

*Click here to watch a video of Sen. Barrasso and Sen. Hatch’s remarks.

A majority of states continue to call on Washington to repeal and replace the President’s health care law.  Facing budget shortfalls, states cannot afford to implement Obamacare’s costly Medicaid mandates.   

Today, Senator John Barrasso (R-WY) and Senator Orrin Hatch (R-UT) discussed Senator Hatch’s “State Flexibility Act” (S. 868).  This bill would give states the flexibility they need by repealing all three state Medicaid “maintenance of effort” (MOE) restrictions – policies that were put in place by the President’s health care law and “stimulus” law.  According to the Congressional Budget Office (CBO), this would save $2.8 billion over 5 years. 

Senators Barrasso and Hatch talked about the “State Flexibility Act” today on the Senate floor:

Hatch said:

“States, unlike Washington which too often just print money to pay for out-of-control spending, actually have to make tough budget decisions every year.

“Washington’s micromanagement of state Medicaid programs makes it incredibly difficult for the states to balance their budgets and provide for those who are most in need.

“The State Flexibility Act fully repeals these burdensome M.O.E. regulations.  It starts to put states back in control to balance their budgets while simultaneously lowering federal entitlement spending.  Now, our legislation will save taxpayers $2.8 billion over just the first five years.

“I’m confident that this bill has the potential to garner strong bipartisan support in Congress and represent a strong first step toward achieving comprehensive Medicaid reform.

“Any senator who has talked to his or her state’s governor knows that we need to pass this legislation to enable states to survive the current fiscal crisis and to better care for the most vulnerable Medicaid beneficiaries in their respective states.

“It’s time for Congress to roll back these unreasonable M.O.E. mandates and put the states—not Washington back in charge.”

Barrasso said:

“I’m delighted to be a cosponsor of a piece of legislation called the State Flexibility Act.

“This State Flexibility Act is a good idea.  It gives states the flexibility that they need.  It gives governors the flexibility that they have requested. 

“It is a bipartisan effort in the sense that governors, whether they be Republican or Democrat, are looking for more flexibility with the, with this Medicaid program, and specifically, the Medicaid maintenance of effort.

“I have seen Medicaid patients, taken care of Medicaid patients over the years, and I know that this is a program that is burdensome. 

“And I served in the state legislature.  So, I know that the mandates coming out of Washington make it harder for the people back home to take care of patients, make it harder for our state legislature to deal with helping people on Medicaid, making it more difficult for physicians to take care of those patients, making it more expensive.”