WASHINGTON – The Department of Health and Human Services has announced that the Obama administration will rescind all or part of three Medicaid regulations that were previously issued and delay the enforcement of a fourth regulation.

The regulations rescinded include a rule that would have limited the outpatient hospital and clinic service benefits for Medicaid beneficiaries to the scope of services recognized as an outpatient hospital service under Medicare.

CMS officials said theyrescinded the rule after becoming aware that coverage beyond that scope could not be easily moved to other benefit categories, resulting in greater impact than previously anticipated.

The administration will also delay until June 30, 2010, the enforcement of portions of a regulation that clarify limitations on healthcare-related tax programs so that CMS officials can determine whether states need additional clarification or guidance. CMS officials said they might also further review the potential impact of the regulation and give additional consideration to alternative approaches.

Each of these rules, in whole or in part, had been subject to Congressional moratoria set to expire on July 1, 2009.

CMS and HHS officials also rescinded a final rule that would have eliminated reimbursement for school-based administrative costs and costs of transportation to and from schools. The rescission reflects administration concern that the rule could limit the Medicaid administrative outreach activities of schools, and that the overall budgetary impact on schools could potentially impact their ability to offer Medicaid services to students.

Finally, the government rescinded provisions of an interim final rule that would have restricted beneficiary access to case management services. CMS officials said the provisions would have restricted beneficiary access to covered case management services and limited state flexibility in determining efficient and effective delivery systems for case management services.

"These regulations, if left in place, would have potentially adverse consequences for Medicaid beneficiaries, some of our nation's most vulnerable people," said HHS Secretary Kathleen Sebelius. "The actions we are taking today are necessary to ensure that the states have the flexibility they need to fully serve Medicaid-eligible individuals."