BOND TO FIGHT AGAINST PLANNED HEALTH RULES

SIKESTON - U.S. Sen. Christopher S. Bond said Monday that a proposed change in federal health-care regulations would cost Missouri $200 million a year in health-care funds aimed at low-income people.

Speaking at a news conference at Missouri Delta Hospital in Sikeston, Bond vowed to fight the new regulations of the Health Care Financing Administration. The regulations were to have taken effect Friday; however, because of concerns raised the effective date was delayed until Aug. 19, when a meeting of the National Governors' Conference concludes.

The regulations would place a ban on voluntary contributions by hospitals to the state Medicaid program. Elimination of the program would have cost $200 million in health care statewide this year, said Bond.

"Access to affordable first-rate health care is important to all Missouri families," Bond said. "Rural hospitals are already straining under an unfair federal payment system that treats them as second class. Now, this federal ban threatens to raise health-care costs for Missourians, rob the needy of health care and throw the state's budget into chaos. We must fight for our health-care dollars."

The senator said voluntary contributions to Medicaid enable the state to have access to additional federal health-care money without using tax dollars, and makes the state better able to meet the needs of indigents.

Bond was accompanied by Charles Bowman, president of the Missouri Hospital Association. Bowman said Missouri and other states are facing heavy financial pressure from federal mandates expanding Medicaid coverage and increasing the number of people who are eligible.

Last year in Missouri 50,000 additional people were added to the program, a 15 percent increase over the previous year. Bowman said that increased the Medicaid program's cost in the state to nearly $1 billion. To meet this pressure, Missouri and 27 other states adopted voluntary contribution programs.

The additional coverage mandated by the federal government is aimed at youths up to 6 years of age and to pregnant women earning up to 133 percent of the poverty level.

Bowman said hospitals voluntarily contribute funds to make up the state's 40 percent share needed to match 60 percent in federal Medicaid money. This means tax dollars do not have to be used to provide the state's share. Instead of getting 65 percent reimbursement for the cost of the care, hospitals participating in the program get about 80 percent.

Both Bond and Bowman chastised the federal government for mandating additional services and then denying states an opportunity to pay for them without increasing taxes.

"Missouri's voluntary contributions are essential to paying for federally mandated Medicaid expansions that will cost Missourians $147 million this year alone," said Bond. "The federal government should not impose program expansions on one hand, then eliminate states' abilities to pay for them with the other."

Bond said the new regulations will put states in an awkward position of raising taxes or cutting services to needy people.

"Does the administration really want to increase taxes at the state level or decrease services provided to low income citizens in health care?" asked the senator.

Bond said a voluntary payments approach is a common-sense way for hospitals and state government to work together.

Bowman praised Bond for his efforts in rallying the support of all members of Missouri's congressional delegation against the new regulations. "We owe a great deal of thanks to Kit Bond for his leadership on this issue," said Bowman.

Bond said he was counting on Missouri Gov. John Ashcroft, who will be taking over as chairman of the National Governors' Conference, to carry the message to governors.

The voluntary contributions program helps pay hospitals for the rising costs of uncompensated patient care, which occurs when a patient is not able to pay their bill. The millions of dollars that hospitals have to provide each year in health care without compensation forces the facilities to raise charges to insured patients. The end result is that costs of insurance premiums for individuals and businesses go up, said Bowman.

"The pressure of rising health-care costs is heavy in Missouri," said Bond. "We must protect funds that pay for our health care so that all Missourians can receive the care they need. These funds are critical to ensuring that all Missouri families get affordable, quality health care."