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JUN. 17. 1997 10:29AM CRIHB NO.766 P.1/1 CALIFORNIA RURAL INDIAN HEALTH BOARD, INC. 1451 River Park Dr., Suite 220 Sacramento, CA 95815 (916) 929-9761 Fax (916) 929-7246 FAX MEMORANDUM TO: Ms. Lynn Cutler Intergovernmental Affairs White House 202/456-2889 FROM: Barbara Beller Barbara Beller Tribal Government Resource Specialist SUBJECT: House Budget Reconciliation Bill/Medicaid DATE: June 17, 1997 I am writing on behalf of 33 tribes and 12 tribal health programs in California to alert the Administration on proposed language contained in the House Budget Reconciliation Bill that would be devastating to tribes and tribal health programs nation wide. Provisions include mandatory enrollment in managed care. It would authorize states to require all Medicaid beneficiaries to enroll in a managed care organization that serves only Medicaid eligible individuals. These organizations would not be required to contract with tribes or Indian Health Service facilities. States would not be required to provide care that has been culturally appropriate within the Indian health system. The language would also phase out payments to federally qualified health centers over the next five years, giving the states the option to set FQHC payments. The managed care organizations (Medicaid) would not be required to contract with FQHC' Lastly, the bill would establish a block grant to the states to provide health coverage to uninsured low-income children. It would be in the form of an entitlement to the states with no protections for Indian children and tribes. There would not be set asides for tribes and funding for tribal child health would be at the discretion of each state. Additionally, states could use their block grants for health insurance or direct purchase of service from providers. Again, the states would be authorized to exclude IHS and tribal health programs by geographical area. It is my understanding the bill will be taken up in the Senate Finance Committee in the next couple of days. We are asking the Administration to keep a watchful eye should these provisions make their way to the President's desk. We are of course taking the appropriate actions with committee members and will request Senator Nighthorse Campbells intervention on behalf of tribes. Any additional information you could provide to me on this matter would be appreciated.