Archive for the ‘Medicare’ Category
AHL’s TOP STORY: House Passes Budget Reconciliation Bill With Medicare, Medicaid Cuts
The House yesterday passed a budget reconciliation bill (HR 5652) that would override automatic cuts scheduled to take effect next year and instead cut entitlement spending, the Washington Times reports.
The bill passed 218-199 on a mostly party-line vote, with 16 Republicans and all 183 Democrats voting against it. The measure is not likely to advance in the Democrat-controlled Senate (Dinan, Washington Times, 5/10). Senate Majority Leader Harry Reid (D-Nev.) already has said he will not bring the measure up for debate (Newhauser, Roll Call, 5/10). The White House also has said President Obama likely would veto the bill if it reached his desk.
The automatic cuts are a result of the debt panel’s failure to reach a compromise last summer. Many lawmakers want to repeal the automatic cuts, known as sequestration, out of concern for defense programs, while others have taken issue with the cuts’ effect on Medicare.
Click here for more.
AHL’s TOP STORY: HHS Proposed Rule Would Boost Medicaid Payments to Primary Care Physicians for Two Years
HHS yesterday released a proposed rule that would implement a provision in the federal health reform law that calls for a two-year increase to Medicaid reimbursements for primary care physicians, the Washington Post reports (Aizenman, Washington Post, 5/9).
Under the rule, the federal government would cover the entire cost of the increase. States would receive more than $11 billion in 2013 and 2014 to bring Medicaid reimbursement rates for PCPs in line with those paid under Medicare (Viebeck, “Healthwatch,” The Hill, 5/9).
BETWEEN THE LINES: Analyzing the Medicare Trustees Report
Medicare’s hospital insurance fund is expected to become insolvent in 2024, a projection unchanged from last year, according to a report released Monday by the board of trustees for Medicare and Social Security. Last year, the board also predicted that the fund would become insolvent in 2024, five years ahead of its 2010 prediction of 2029.
Both Politico and Reuters reported the trustees’ main findings — that Medicare should be able to avoid insolvency until 2024. They both also noted that the estimate remains unchanged from last year’s report and that the Obama administration and Democrats are using the report to showcase the federal health reform overhaul has helped to strengthen Medicare.
AHL’s TOP STORY: Republicans Back Off From Proposed Medicare, Medicaid Budget Changes
House Republicans are opting for less controversial spending cuts, such as cutting federal health reform law funding, over pursuing broad changes to Medicaid and Medicare included in House Budget Committee Chair Paul Ryan’s (R-Wis.) House-passed fiscal year 2013 budget proposal, the AP/Washington Times reports (Taylor, AP/Washington Times, 4/24).
Ryan’s budget plan — which the House passed in March and approved again in a procedural move earlier this month — would transform Medicare from a fee-for-service program to one in which beneficiaries could either purchase coverage on the private market or maintain traditional Medicare coverage. The proposal also would reduce Medicaid spending and convert the program to a block-grant system, in which states would receive a fixed amount (American Health Line, 4/18).
WHAT WE’RE READING: Don’t Worry, It’s Not All Bad News
- “A Nugget of Good Medicare News,” Washington Post’s “Wonkblog”: New report finds Medicare will be able to pay its bills through 2024.
- “Old Blood and Tissue May Hold a lot of Secrets,” Washington Post: Making medical discoveries using blood samples over half a century old.
AHL’s TOP STORY: Medicare’s Hospital Insurance Trust Fund Insolvency Date Remains 2024, Trustees Report Finds
Medicare’s hospital insurance fund is expected to become insolvent in 2024, a projection unchanged from last year, according to a report released yesterday by the board of trustees for Medicare and Social Security, AP/Washington Post reports (AP/Washington Post, 4/23). Last year, the board also predicted that the fund would become insolvent in 2024, five years ahead of its 2010 prediction of 2029 (American Health Line, 5/16/2011).
According to the report, Medicare’s hospital insurance has been paying out more than it has received since 2008. In 2011 alone, Medicare used $27.7 billion in trust fund assets to cover hospital insurance expenses (Trustees’ report, 4/23).
AHL’s TOP STORY: Medicare Competitive Bidding Pilot Saved $202M, CMS Says
A yearlong Medicare competitive bidding pilot program conducted in nine metropolitan areas reduced costs by 42%, or $202 million, without reducing care quality, according to a CMS report released yesterday, the New York Times reports (Pear, New York Times, 4/18).
Congress in 2003 ordered CMS to establish the Durable Medical Equipment, Prosthetics, Orthotics and Supplies competitive bidding program. The federal health reform law expanded the program, under which DME suppliers offer bids to provide certain equipment for Medicare in competitive bidding areas. CMS uses the bids to set reimbursement rates (American Health Line, 8/22).
AHL’s TOP STORY: Conrad Does Not Introduce Democratic Budget Plan, Instead Will Offer Version of Simpson-Bowles
Senate Budget Committee Chair Kent Conrad (D-N.D.) yesterday announced that instead of introducing a Democratic budget plan in his committee this week, he will introduce a version of a bipartisan budget plan developed in 2010 by former Sen. Alan Simpson (R-Wyo.) and former Democratic White House Chief of Staff Erskine Bowles, the Washington Post‘s “2chambers” reports (Helderman, “2chambers,” Washington Post, 4/17). Conrad also said he will not ask senators to vote on the proposal, noting that he instead wants to spend more time developing bipartisan consensus on the plan (Friedman, National Journal, 4/17).
AHL’s TOP STORY: CMS Reaches Settlement With 2,200 Hospitals Over Error in Reimbursements
CMS on April 5 agreed to a settlement with about 2,200 hospitals to end lawsuits related to an error in reimbursement rates, according to parties involved in the deal, the Los Angeles Times reports.
In the suits, the hospitals allege that Medicare committed a mathematical error in 1998 when it adjusted certain reimbursements for inpatient hospital care to reflect area wages. Congress requested the change in the Balanced Budget Act of 1997 to ensure adequate reimbursements for urban and rural hospitals. According to the lawsuits, the error caused thousands of hospitals to receive significant underpayments.
AHL’s TOP STORY: CMS Announces 27 Medicare Shared Savings Program Participants
CMS yesterday announced it has selected 27 health organizations to become accountable care organizations under the federal health reform law’s Medicare Shared Savings Program, Modern Healthcare reports.
The announcement comes after CMS in January launched the “Pioneer” Accountable Care Organization program that created 32 new ACOs, and the Physician Group Practice Transition Demonstration, which created six new ACOs (Daly, Modern Healthcare, 4/10).

