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MEDICAID BUDGET INITIATIVES

HEARINGS

BEFORE THE

SUBCOMMITTEE ON

HEALTH AND THE ENVIRONMENT

OF THE

COMMITTEE ON

ENERGY AND COMMERCE

HOUSE OF REPRESENTATIVES

ONE HUNDRED FIRST CONGRESS

SECOND SESSION

SEPTEMBER 10 AND 14, 1990

Serial No. 101-206

Printed for the use of the Committee on Energy and Commerce

39-938

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1991

For sale by the Superintendent of Documents, Congressional Sales Office
U.S. Government Printing Office, Washington, DC 20402

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COMMITTEE ON ENERGY AND COMMERCE

JOHN D. DINGELL, Michigan, Chairman

JAMES H. SCHEUER, New York
HENRY A. WAXMAN, California
PHILIP R. SHARP, Indiana

EDWARD J. MARKEY, Massachusetts
THOMAS A. LUKEN, Ohio
DOUG WALGREN, Pennsylvania
AL SWIFT, Washington
CARDISS COLLINS, Illinois
MIKE SYNAR, Oklahoma

W.J. "BILLY" TAUZIN, Louisiana

RON WYDEN, Oregon
RALPH M. HALL, Texas
DENNIS E. ECKART, Ohio

BILL RICHARDSON, New Mexico
JIM SLATTERY, Kansas
GERRY SIKORSKI, Minnesota
JOHN BRYANT, Texas
JIM BATES, California
RICK BOUCHER, Virginia
JIM COOPER, Tennessee
TERRY L. BRUCE, Illinois
J. ROY ROWLAND, Georgia
THOMAS J. MANTON, New York
EDOLPHUS TOWNS, New York
C. THOMAS MCMILLEN, Maryland

NORMAN F. LENT, New York
EDWARD R. MADIGAN, Illinois
CARLOS J. MOORHEAD, California
MATTHEW J. RINALDO, New Jersey
WILLIAM E. DANNEMEYER, California
BOB WHITTAKER, Kansas
THOMAS J. TAUKE, Iowa

DON RITTER, Pennsylvania

THOMAS J. BLILEY, JR., Virginia

JACK FIELDS, Texas

MICHAEL G. OXLEY, Ohio
HOWARD C. NIELSON, Utah
MICHAEL BILIRAKIS, Florida
DAN SCHAEFER, Colorado
JOE BARTON, Texas

SONNY CALLAHAN, Alabama
ALEX MCMILLAN, North Carolina

JOHN S. ORLANDO, Chief of Staff
JOHN M. CLOUGH, JR., Staff Director

MARGARET A. DURBIN, Minority Chief Counsel/Staff Director

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Bristow, Lonnie R., member, board of trustees, American Medical Asso-
ciation.

696

Gehring, Richard, chair, board of directors, Alzheimer's Association
Hanley, Ray, chairman, State Medicaid Directors' Association of the
American Public Welfare Association.....

96

131

Ingram, Robert A., executive vice president, Glaxo, Inc
Johnson, Kay, director, health division, Children's Defense Fund..
Jones, William E., executive director, American Association of University
Affiliated Programs for Persons With Developmental Disabilities..

Kennelly, Hon. Barbara, a Representative in Congress from the State of

Connecticut..

McGuire, Jean F., executive director, AIDS Action Council

Melden, Michael, staff attorney, National Health Law Program.

Miller, Hon. George, a Representative in Congress from the State of

California

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Mossinghoff, Gerald J., president, Pharmaceutical Manufacturers Asso-
ciation

572

Siegel, David, medical director, Health Alliance Plan of Michigan.....

Shikles, Janet L., director, Health Financing and Policy Issues, Human
Resources Division, General Accounting Office

367

367

Testimony of-Continued

Slattery, Hon. Jim, a Representative in Congress from the State of
Kansas

Swift, Hon. Al, a Representative in Congress from the State of Washing-
ton

Tallon, James R., Jr., majority leader, New York State Assembly, on behalf of the Robert Wood Johnson Foundation.......

Taylor-Little, Carol, on behalf of the National Conference of State Legislatures.....

Thompson, Lawrence H., Assistant Comptroller General, Human Resources Division, General Accounting Office.

Page

7

6

490

116

512

Toews, James D., on behalf of the National Association of State Mental
Retardation Program Directors, Inc.

145

Torda, Phyllis, director, health policy, Families USA Foundation

Weiss, Hon. Ted, a Representative in Congress from the State of New
York

498

16

Wilensky, Gail R., Administrator, Health Care Financing Administration.
Wolfe, Sidney M., director, Public Citizen Health Research Group.......
Zabriskie, John L., president, Merck, Sharp & Dohme

157

268

625

Ziegler, Ronald L., president and chief executive officer, National Association of Chain Drug Stores..

Material submitted for the record by:

655

Affordable Financing for Longterm Care, statement..
American Psychiatric Association, statement....

748

750

American Psychological Association, et al., statement.
Bayh, Evan, Governor, State of Indiana, statement...

248

487

California Children's Hospital Association, statement.

752

California Legislature, Steven Thompson, director, Assembly Office of
Research, statement...

763

Community Legal Services, Inc., statement.

765

Detroit Association of Black Organizations, statement.

779

Hall, Hon. Tony P., a Representative in Congress from the State of Ohio, statement

226

Health and Human Services, letter from Gail Wilensky to Chairman
Waxman and additional responses to questions of August 15..........
Healthcare Management Alternatives, Inc., letter dated September 24,

212

1990 from Anthony Welters to Chairman Waxman Health Insurance Association of America, statement... Industrial Biotechnology Association, statement......

781

792

801

National Black Caucus of State Legislatures, statement
National Data Corporation, statement...

803

807

Panetta, Hon. Leon E., a Representative in Congress from the State of
California, statement..

4

Texas Department of Human Services, statement.

815

Voice of the Retarded, letter dated September 7, 1990 from Marty Pratt, president, to Chairman Waxman

41

MEDICAID BUDGET INITIATIVES

MONDAY, SEPTEMBER 10, 1990

HOUSE OF REPRESENTATIVES,

COMMITTEE ON ENERGY AND COMMERCE,

SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT,

Washington, DC.

The subcommittee met, pursuant to notice, at 9:55 a.m., in room 2322, Rayburn House Office Building, Hon. Henry A. Waxman (chairman) presiding.

Mr. WAXMAN. Good morning. The meeting of the subcommittee will please come to order.

This morning, this subcommittee will hold the first day of 2 days of hearings on Medicaid budget initiatives.

The purpose of these hearings is to prepare the subcommittee to respond to whatever directives are issued to the Energy and Commerce Committee under the terms of the agreement reached at the budget summit.

The subcommittee has before it six main initiatives:

The Medicaid Infant Mortality Amendments, H.R. 3931, which would implement a campaign promise of President Bush to phase in Medicaid coverage for pregnant women and infants with incomes below 185 percent of the Federal poverty level;

The Medicaid Child Health Amendments, H.R. 3932, which would implement a campaign promise of President Bush to phase in Medicaid coverage for all children in families with income below 100 percent of poverty;

The Medicaid Frail Elderly Community Care Amendments, H.R. 3933, which would allow States to cover home and communitybased services for the low-income functionally disabled elderly;

The Medicaid community rehabilitation services amendments of 1990, H.R. 3934, which would allow States to cover only community-based services for Medicaid-eligible individuals with mental retardation, epilepsy, or cerebral palsy;

The Medicaid Hospice Amendments, H.R. 3935, which would require States to cover hospice services under the Medicaid programs, and the Medicaid AIDS and HIV Amendments, H.R. 4080, which would allow States to extend Medicaid coverage for preventive drugs and physician services to lower income individuals infected with the HIV virus.

Many of the subcommittee members are joined in sponsoring these initiatives.

All of the details of these initiatives were adopted by this committee and by the full House last year.

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