Facing a severe budget shortfall, Rhode Island officials areseeking unprecedented authority to rein in Medicaid spending in a move that has alarmed Democrats in Congress and advocates for the poor.
The plan outlined by Rhode Island officials could save the state millions of dollars, but critics say it would limit access to nursing homes, charge poor families more for medical care and potentially establish waiting lists or cut people from the program. They are now urging the Bush administration to reject the state’s request for a waiver to cap its Medicaid spending at about a quarter of the state budget without regard to rising health-care costs or the number of families in poverty.