Senate Finance Proposal Would Cut Both Medicare and Medicaid

CAL/AAEM News Service calaaem_news at yahoo.com
Wed Oct 26 16:18:58 PDT 2005


Senate Finance Proposal Would Cut Both Medicare and Medicaid

Source: AAMC Washington Headlines (http://www.aamc.org/advocacy/washhigh/start.htm) 
Date: October 14, 2005


Congressional Quarterly Oct. 13 reports that a budget reconciliation proposal
by Senate Finance Committee Chair Charles Grassley (R-Iowa) includes $12
billion over 5 years in cuts to both the Medicare and Medicaid programs, $2
billion more than currently required by the FY 2006 budget resolution.

Of particular concern to hospitals is a proposal reportedly under consideration
that would reduce Medicare outpatient payments by $400 million. Other provider
proposals under consideration include a home health market basket freeze and
reducing the amount of bad debt nursing homes can write off. Much of the
proposal's Medicare savings would be achieved through proposals that would
affect Medicare Advantage plans.

The proposal would avert a 4.4 percent cut to Medicare physician payments by
freezing them at 2005 levels for one year at a cost of $6.6 billion. The
proposal would also include legislation to implement "pay for performance"
programs for all providers.

Concerning Medicaid, the Finance package reportedly would revise methodologies
for prescription drug reimbursements, require drug manufacturers to pay
additional rebates, make it more difficult for individuals to transfer their
assets in order to qualify for long-term care, and reduce managed care provider
taxes.

The proposal also includes Medicaid spending for a scaled-back version of
Grassley's Katrina relief package (S. 1716) [see Washington Highlights, Sept.
23] and legislation (S. 183) allowing middle-income families to buy in Medicaid
on a sliding premium scale to cover disabled children.

Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle at aamc.org
(202) 828-0526


Cyrus Shahpar & Brian Potts 
Managing Editors, CAL/AAEM News Service
University of California, Irvine

The CAL/AAEM Archives are available at: http://maillists.uci.edu/mailman/public/calaaem/



		
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