New Mexico’s congressional delegation is calling for more oversight of funds meant to soften the impact of federal health care cuts in rural areas. Rep. Teresa Leger Fernandez (D-NM) sent a letter signed by 27 Democratic members of Congress, including New Mexico's other representatives, Democrats Gabe Vasquez and Melanie Stansbury, to Health and Human Services Secretary Robert F. Kennedy Jr.
The letter states the fund doesn’t do enough to cover the $1 trillion in cuts to Medicaid, and gives Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz "sweeping authority to approve or deny state applications, and distribute funds with little to no public or congressional oversight.”
The $50 billion Rural Health Transformation Program was created as a part of the federal budget reconciliation bill, more widely known as President Trump’s massive tax and spending bill. The Senate added the program to the bill after members of both parties voiced concerns the bill’s funding cuts would irreparably damage rural hospitals.
In the Kennedy letter, the signees urge CMS to establish a deadline for states’ applications, outline transparent criteria and metrics for proposal evaluation and approval, and prioritize funding for rural communities most impacted by the larger health care funding cuts.
Troy Clark, president of the New Mexico Hospital Association, told KUNM that there needs to be more clear guidance on where exactly these funds would go and who would qualify for them.
Clark said comments made by Oz and Kennedy have muddled things further. For example, Kennedy said the funds could be granted to urban hospitals, but Clark said the statute itself doesn’t include guidelines on whether that hospital has to serve rural areas, or any details on how those funds would be approved.
Clark says he “greatly appreciates” Leger Fernandez’s request for clarification, and eagerly awaits guidance from CMS.
The letter seeks a formal response from Kennedy.
Support for this coverage comes from the W.K. Kellogg Foundation.
