Sun editorial:

Ditch a bad rule

Bush administration should drop Medicaid cuts that federal judge has negated

Wednesday, May 28, 2008 | 2:06 a.m.

A federal judge has set aside the Bush administration’s planned cuts to Medicaid hospital payments, saying the administration made an unsuccessful attempt to “outfox a clear directive of Congress.”

In issuing his decision Friday, U.S. District Judge James Robertson noted that Congress passed a law May 24, 2007, that placed a one-year moratorium on “any action” that would cut federal Medicaid payments to hospitals. But, Robertson added, before President Bush signed the 2007 legislation, Health and Human Services Secretary Mike Leavitt “rushed (the) typo-ridden final rule” to the Federal Register.

Congress was not notified of the rule change, as required by law, until May 25, 2007 — the day the moratorium was to take effect. So the rule amounted to an end-run around Congress’ intentions, Robertson said.

Hospital officials, who sued the federal government to block the cuts, have said cuts in Medicaid payments to teaching hospitals would make it difficult to offer care to patients who are poor or uninsured.

The House and Senate have overwhelmingly approved extending the 2007 moratorium to March 2009. But that measure is included in a larger defense spending bill the Senate has passed but the House has yet to approve.

The fate of the Medicaid cuts moratorium remains in limbo, and federal officials now must decide whether to republish the rule that allows the cuts. If they do so, the cuts would go into effect 60 days after the rule is published.

Centers for Medicare and Medicaid Services officials told the Associated Press they will wait until Aug. 1 to make the rule effective to give the administration time to address concerns of Congress, governors and state Medicaid officials.

Hospital officials have said they will ask Congress to intervene — again.

The Bush administration’s efforts to offset its abysmal budget decisions by cutting programs that provide for the health and welfare of the poorest and most vulnerable Americans are indefensible. Congress should ensure that these cuts do not go forward.