Schumer said that the proposed rule change contained key provisions that he fought for over the past few months to prevent millions in immediate cuts to New York health programs. Because of the hard work of the New York delegation, we brokered a strong compromise that will allow HCFA to close a costly Medicaid loophole without cutting health programs and nursing home services.
Some states then use federal matching funds for non-health related purposes.
Since New York uses federal matching funds dollars for health related purposes including children's health insurance, nursing home care, Medicaid payments and Family Health Plus HCFA's action would have seriously hampered the state's ability to deliver care to low-income and underserved New Yorkers. Schumer led the fight to convince the Administration to amend its rule change to ensure that health services in New York would not be hurt by the agency's action. Over the past four months, Schumer personally contacted President Bill Clinton, HCFA Administrator Nancy Ann Min DeParle, White House Legislative Affairs Director Chuck Brain and Office of Management and Budget Director Jack Lew to urge them to find a compromise that would help restore some of the Medicaid funds slated to be eliminated. This will give New York health providers time to adjust to the new system and ensure that current health initiatives still receive funding. This will help state health providers make up for the losses in federal money caused by the new limits.