Tennessee Republicans Lamar Alexander and Bob Corker have written a letter to Senate colleagues protesting a proposed change in the way the federal government funds Medicaid programs.
The federal government wants to save about 12-billion dollars in Medicaid spending by capping reimbursement payments, establishing cost limits for public health providers, and redefining what is considered a “public” hospital.
In the letter to the leaders of the Senate Finance Committee, Alexander and Corker say the change could mean a loss of more than 300-million dollars for Tennessee hospitals. And they say, for 19 Tennessee hospitals, the lost of revenue will mean a change from operating in the black to operating in the red.
Last month, three Tennessee congressmen – Democrats Lincoln Davis and Bart Gordon, and Republican John Duncan – were among lawmakers who signed onto a letter criticizing the change. It said, quote “attempts to shift the cost burden onto states will leave them with no choice but to cut benefits or eliminate coverage.”
Today is the last day for public comment on the proposed change, which does not need congressional approval to go into effect.
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