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GAO-01-457R 1 (2001-02-27)

handle is hein.gao/gaobadwee0001 and id is 1 raw text is: im Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 B-287289 February 27, 2001 The Honorable Chuck Grassley Chairman The Honorable Max Baucus Ranking Member Committee on Finance United States Senate The Honorable W. J. (Billy) Tauzin Chairman The Honorable John D. Dingell Ranking Minority Member Committee on Energy and Commerce House of Representatives Subject: Department of Health and Human Services, Health Care Financing Administration: Medicaid Program Change in Application of Federal Financial Participation Limits Pursuant to section 801(a) (2) (A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Health and Human Services, Health Care Financing Administration (HCFA), entitled Medicaid Program; Change in Application of Federal Financial Participation Limits (RIN: 0938-AJ96). We received the rule on February 13, 2001. It was published in the Federal Register as a final rule on January 11, 2001. 66 Fed. Reg. 2316. The final rule changes the current requirement that limits on Federal Financial Participation (FFP) must be applied before states use less restrictive income methodologies than those used by related cash assistance programs in determining eligibility for Medicaid. According to HCFA, the change is necessary because the current interpretation of how the FFP limits apply to income methodologies under section 1902(r)(2) of the Social Security Act unnecessarily restricts the states' abilities to take advantage of the authority to use less restrictive income methodologies under that section of the statute. We note that the final rule has an announced effective date of March 12, 2001. Section 801(a)(3) of the Congressional Review Act (5 U.S.C. 801(a)(3)) generally requires that a major rule take effect no earlier than 60 days after the later of GAO-01-457R

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