No. 6
June/July 2010

CMS Withdraws Medicaid Rule Limiting Rehabilitative Services

The Centers for Medicare & Medicaid Services (CMS) has withdrawn a controversial Medicaid proposal by the Bush administration to limit federal funding for rehabilitative services provided by child welfare, foster care, and other “nonmedical” programs.  The  August 2007 rule was projected to save $2.2 billion from 2008 to 2012, but state officials and patient advocates strongly objected to shifting costs to the states and  decreasing patient access and services.  Congress delayed the proposal in a series of moratoriums on this and other Medicaid rules.  The withdrawal action can be found at 74 Fed. Reg. 61,096 (Nov. 23, 2009), or through the Federal Register website.

Eileen Shannon Carlson, RN, JD

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