Committee brushes aside Bush veto threat on Medicaid bill

Despite a veto threat from President Bush, a House committee has unanimously approved legislation blocking seven new rules that the Bush administration sought for the Medicaid program. The Bush administration had made it clear that it would oppose a moratorium on seven new rules that could reduce Medicaid spending by about $13 billion over the next five years. The rules would affect a variety of healthcare providers, and supporters of the moratorium say the rules will shift more costs onto states and the poor at a time when they cannot afford it. Bush said the rules will prevent states from improperly shifting more health costs onto the federal government.