Bush Rescinds Health Policy
The Bush administration said today that it was rescinding a new policy that allowed managed care organizations to limit and restrict coverage of emergency services for poor people on Medicaid.

The reversal came five days after existence of the policy was publicly disclosed. On Tuesday, senior administration officials were still defending the policy in meetings with senators of both parties.

But Senate aides said it was clear that the Senate would pass legislation to block the policy if the administration did not retract it.

The policy, set forth in a Dec. 20 letter to state Medicaid directors, said states could place limits on coverage of emergency services "to facilitate more appropriate use of preventive care and primary care."

Federal officials had previously told state officials that such limits were illegal.
http://www.nytimes.com/2003/01/23/politics/23HEAL.html