Congress Wants HHS to Clarify CHIP-Medicaid Blended Rate Proposal

GOP leaders of the U.S. House Energy and Commerce Committee and Senate Finance Committee have sent a letter to HHS Secretary Kathleen Sebelius asking for the data and formula used to estimate federal savings from a proposed blended matching rate for the Children's Health Insurance Program and Medicaid, according to an AHA News Now report.

Congressional leaders from the committees have asked the administration to release the legislative and policy specifications for the blended rate proposal by July 27 so that governors and state legislatures can make a more informed decision on whether to implement Medicaid expansion called for in the 2010 healthcare law, according to the report.

President Obama's fiscal year 2013 budget plan calls for the application of a single blended rate to Medicaid and CHIP that would save nearly $18 billion over 10 years. The federal government would pay a single rate to states for Medicaid and CHIP assistance rather than the current mixed matching rate, saving money by setting the "blended rate" below what is currently provided for through mixed payments.

"A blended federal Medicaid rate that reduces Medicaid spending over time is a policy that would reduce federal funding to states through a reduced federal match, notably a reduction to the enhanced match to states for the newly eligible Medicaid beneficiaries," the representatives write in their letter to HHS.

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