The conference report does speak to the broader issue of the applicability of Medicare payment principles to Medicaid payments for inpatient services. in view of the clear legislative history delinking Medicare and Medicaid payment methodologies. this seemed unnecessary. However. should the Secretary persist in attempting to impose Medicare payment limits on State Medicaid payments. further statutory clarification may be necessary. The conference agreement establishes new rules regarding the coverage of illegal aliens under Medicaid. The Medicaid statute is currently silent on this question. and a Federal district court recently ruled that certain categories of illegal aliens are eligible. The conference agreement provides that aliens who are otherwise eligible for Medicaid but who are not lawfully admitted for permanent residence or residing in this country under color of law are entitled to have Medicaid pay for treatment of emergency medical conditions. This includes labor and delivery services which. according to CBO. represent an estimated 90 percent of all hospital deliveries.
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