Legal Battle Over New Medicaid Law
New Medicaid standards which require that patients show primary documentation of American citizenship before receiving benefits are under fire from hospitals and other healthcare providers. The law took effect on July 1, 2006, and arguments for a temporary restraining order will be heard on July 7, 2006, in the U.S. District Court in Chicago.
In a joint letter to U.S. Health and Human Services Secretary, the American Hospital Association, the Federation of American Hospitals and several other entities expressed their concern, “that states will be overly cautious in interpreting (government regulations) and err on the side of not enrolling eligible individuals.” The legislation providing the new standards is linked to state receipt of federal funding, so if a state violates the regulation, the federal government can withhold money.
Hospitals are asking for more relaxed standards concerning when the documentation must be produced. Critics say that those who will be affected the most by this legislation are the mentally ill and those in nursing homes, who may not have access to the primary documents required. While the government anticipates that only 35,000 people will be affected, one non-profit has estimated that as many as 3 to 5 million people are without primary documentation.