Congressional Update

Congress Passes Legislation Aimed at Reducing Recidivism

On March 11, the U.S. Senate passed a House bill, H.R. 1593 by Rep. Danny Davis (D-IL), aimed at assisting inmates released from jail or prison in successfully reentering their communities. Also known as the Second Chance Act, the legislation is now headed to President Bush, and the President is expected to sign it.

According to the Department of Justice, about two-thirds of the inmates released annually from prisons and jails will be reincarcerated within three years. This legislation seeks to address this problematic issue. Specifically, the bill provides an annual authorization of $165 million which would provide comprehensive assistance to state and local governments in developing programs that will assist persons leaving jail or prison in safely and successfully reintegrating into their communities. Such programs must be geared towards assisting inmates with critical reentry needs such as housing, employment, education, substance abuse treatment, and mental health services.

The bill authorizes several grant programs which will be administered by the Department of Justice. Among its provisions, it authorizes $55 million for adult and juvenile offender state and local government reentry demonstration projects (allowable use of funds include employment services, housing, substance abuse treatment and family programming); $10 million for the creation of state and local reentry courts which would monitor offenders and assist them with access to services; $10 million in grants to state and local prosecutors for substance abuse treatment programs which serve as alternatives to imprisonment; and, $10 million in grants to state and local governments for family-based drug treatment programs for incarcerated parents who have minor children.

New Medicaid Regulations May Cost Texas $3.4 Billion in Federal Funding; Legislation Introduced to Delay Regulations
H.R. 5613 by Rep. John Dingell (D-MI) was recently introduced in the U.S. House in an effort to impose a one-year moratorium on the Medicaid regulations recently issued by the Centers for Medicare and Medicaid Services (CMS). Two of these regulations would reduce Medicaid reimbursements for services provided by public hospitals and teaching hospitals. Other regulations would limit Medicaid coverage for outpatient hospital services, rehabilitation services, school-based administrative and transportations services, and case management services.

According to the Texas Health and Human Services Commission (HHSC), Texas could lose $3.4 billion in federal Medicaid funds during fiscal years 2008- 2012 due to the changes made by these regulations. Specifically, HHSC estimates that the restrictions on Medicaid reimbursements for public providers would cost Texas about $2.2 billion over five years, and that each year, more than 185,000 Texans would be at risk of not receiving hospital services or could experience a significant reduction in services.

Also known as the “Protecting the Medicaid Safety Net Act of 2008”, H.R. 5613 would prohibit the Centers for Medicare and Medicaid Services from implementing these regulations until April 2009. The U.S. House of Representatives Committee on Oversight and Government Reform recently issued a report on these Medicaid regulations and their potential impact. To view the report, please visit: http://oversight.house.gov/features/medicaid08/.