Medicaid patients' rights rule on hold

WASHINGTON (AP) -- States and HMOs are lobbying the Bush administration to undo last-minute Clinton era regulations that gave Medicaid patients new rights in dealing with their health insurance plans.

Contention over the regulations, among many put on hold when President Bush took office, will force the new president to step quickly into the debate over managed health care and how much power patients should have.

Patient groups argue that laws are needed to prevent cost-conscious insurance companies from cutting corners, denying referrals and withholding needed care. Insurance companies and those who pay the bills -- in this case, state governments -- counter that too many regulations drive up the cost of health care.

Frustrated at its inability to get patients' rights legislation through Congress, the Clinton administration set out to extend protections for patients where it could, including health plans for federal workers and in Medicare, the health program for seniors.

Now insurance companies, governors and Medicaid directors are gearing up to lobby for changes.