Reduced Medicaid funding may diminish emergency response

The Congressional Committee on Oversight and Government Reform held the second of a two-day hearing on “the impact of the Administration’s Medicaid regulations on the ability of our nation’s emergency rooms to respond to a sudden influx of casualties from a terrorist attack,” said Chairman Henry Waxman (D-CA). Waxman said that based on the first hearing, he was concerned about trauma centers that have “little or no surge capacity.” He said that the Bush Administration’s plans to cut Medicaid funding for hospitals would make trauma centers even more incapable of responding to a large-scale emergency situation similar to Hurricane Katrina, the Minneapolis bridge collapse, the Madrid train bombings, or other potential threats.

U.S. Department of Health and Human Services Secretary Michael Leavitt agreed with the Chairman that emergency response system was inadequate, but said that Medicaid funding was not the correct tool with which to fix the problem. He said that Medicaid’s first priority is to provide health care for “low-income seniors, children, pregnant women, and people with disabilities,” and not to support institutions. He said that Medicaid “should not become a limitless account for State and local programs and agencies to draw Federal funds for non-Medicaid purposes,” and that “allowing for the continuation of abusive practices of shifting costs to the Federal government is not the appropriate way to ensure our nation’s preparedness.”

U.S. Department of Homeland Security Michael Chertoff agreed with Leavitt, and said that there is no guarantee that Medicaid funds would be spent on emergency response.