The House Energy and Commerce Committee today voted 28-19 to approve the Common Sense Savings Act (H.R. 4725), legislation that would cut $30 billion in funding over 10 years from state Medicaid and Children’s Health Insurance Programs and the federal Prevention and Public Health fund. About $14 billion in cuts would come from eliminating the PPH Fund, while the impact of the Medicaid and CHIP changes would vary by state. In general, they would reduce the limit on state Medicaid provider taxes from 6% to 5.5% of net patient service revenues effective Jan. 1, 2017, and eliminate the enhanced Federal Medical Assistance Percentage for CHIP for part of fiscal year 2016 through FY 2019. The legislation also would require states to account for lottery winnings and other irregular lump-sum income for non-elderly and non-disabled beneficiaries over multiple months; and prohibit states from claiming federal Medicaid matching funds for the cost of inpatient services provided to eligible prisoners admitted to a non-correctional medical facility for at least 24 hours. Amendments offered by Democrats to remove various provisions of the bill failed along party lines.

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