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The Bush administration bypassed Congress again to issue an administrative directive overruling state policies for Medicaid enrollment, a strategy similar to the one employed in August to limit the State Children's Health Insurance Program (SCHIP). A spokesman defended the policy of capping enrollment at $41,000 saying it showed compassion for “the neediest.” Critics disagree noting the prerogative to set criteria for Medicaid enrollment has traditionally belonged to the states.

Last week's announcement comes when a new report indicates services and personnel in community health centers are stretched thin, partly as a result of earlier Medicaid cutbacks and an increase in the numbers of uninsured. This is particularly severe for people seeking mental health services, who grew 170 percent between 2001-2006.

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Kaiser Commission on Medicaid and the Uninsured

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