The U.S. Senate passed a six-month extension of Medicaid funding by a vote of 61-38. That’s the good news. But the picture is anything but rosy, and there are no clear skies ahead. This result is only a progression towards funding approval – and that was only possible because Republicans Susan Collins and Olympia Snowe joined with all the Democrats to provide the minimum 60 votes necessary. Did that pass the bill in Senate? Nope. That’s just what it takes to move it to the Debate stage.
What exactly is being debated? Well, first off, the bill isn’t all about Medicaid. Education and other aspects are also bundled in. The complexity of the legislation seems to be part of the hold-up. Senate’s current form of proposed legislation would taper off the Federal involvement in supporting the states, which currently includes a 6.2% bonus to the state governments. This bill proposes cutting that to 3.2% during the first quarter of 2011, and then drop it by 1.2% more in June of 2011* (see Update at the end of this piece).