[Congressional Record Volume 141, Number 58 (Wednesday, March 29, 1995)]
[Extensions of Remarks]
[Pages E722-E723]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         LEGISLATION TO CONTROL GROWTH OF MEDICAID EXPENDITURES

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                          HON. SUSAN MOLINARI

                              of new york

                    in the house of representatives

                         Tuesday, March 28, 1995
  Ms. MOLINARI. Mr. Speaker, today I stand before this House to 
introduce legislation that will control the growth of Medicaid 
expenditures by rewarding States that make an effort to reign in 
runaway Medicaid spending. This bill is a companion to the one 
introduced yesterday in the other body by Senator D'Amato 
[[Page E723]] and cosponsored by the majority leader, Senator Dole. 
Both bills are pivotal in our goal to reduce Government waste and 
spending.
  First, this legislation directs the Secretary of Health and Human 
Services to establish a Medicaid spending baseline for each State. 
Additionally, any State that holds its spending below the baseline 
would receive a payment equal to 20 percent of the resulting savings to 
the Federal Government.
  This legislation is based on an idea set forth by New York Governor 
George Pataki, when he testified recently before the House Ways and 
Means Committee. Many States including my home State of New York, are 
attempting to reduce the cost of Medicaid programs by greater use of 
managed care. Through New York's efforts, the Federal Government stands 
to save nearly $2 billion. Governor Pataki is right to suggest that if 
the States can save the Federal Government money through cost-savings 
initiatives such as Medicaid managed care, then the States should share 
in the savings as a reward. These efforts have the potential to improve 
the quality of care for Medicaid beneficiaries as well as dramatically 
lower the cost to the American taxpayers. Both of these goals have 
received bipartisan support.
  We must provide States with the incentive to make their Medicaid 
programs more efficient. This is precisely what this bill would do. No 
State would be penalized for spending above the baseline, but those 
that spend below the baseline would be rewarded. Rewarding States that 
save the Federal Government money is not only fair, but makes sense. 
Comprehensive and systematic reform is required in order to preserve 
Medicaid for future generations.
  This bill is long overdue and necessary to preserve Federal and State 
programs for the health care of our Nation's low-income families.


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