WASHINGTON WIRE
June 13, 2008
Issue 173
Senate Republications Filibuster Democrats’ Medicare Physician Payment Bill
House Bill Introduced to Delay Competitive Bidding Program for Medical Equipment
HHS Announces Sites for Electronic Health Record Demonstrations
Top Story
Senate Republicans Filibuster Democrats’ Medicare Physician Payment Bill
This week, Senate Republicans successfully blocked an attempt by Democrats to pass a Medicare bill aimed at preventing a scheduled 10.6% cut to physician reimbursements effective July 1st.
Senate Finance Committee Chairman, Max Baucus (D-MT), and Ranking Member Charles Grassley (R-IA) have been unable to reach an agreement on how to pay for the physician payment fix. Chairman Baucus introduced a bill early this week that would prevent the cut and provide doctors with a 1.1% pay increase in 2009. The bill also includes some expansions of Medicare benefits. The Chairman’s bill would cost approximately $19.8 billion over five years and would be “paid for” primarily through cuts to Medicare managed care (Medicare Advantage) fee-for-service plans and bonus payments related to teaching hospitals under the Medicare Advantage program.
Republicans in Congress and the Administration have been vocal about their opposition to cuts to the Medicare Advantage plans and the President has threatened to veto any legislation which includes such offsets.
On Thursday, Democratic leaders failed to garner the 60 votes necessary to end the Republican filibuster of the Medicare bill, which was brought directly to the floor, bypassing a Committee vote. Republicans offered their own bill to prevent the doctor’s cut but it was not brought up for a vote. The Republican bill did not propose cuts to the Medicare Advantage private fee-for-service plans, but would eliminate the same bonus payments related to teaching hospitals and would make changes to Medicaid.
It is now expected that Democratic and Republican leaders will begin bipartisan discussion once again. Compromise legislation will likely be more limited in scope than Chairman Baucus’ current bill. Although a Medicare physician payment cut will take effect next month if Congress does not act, it is possible that passage of a Medicare bill in July could retroactively fix the physician fee schedule problem.
Health Care News
House Bill Introduced to Delay Competitive Bidding Program for Medical Equipment
On Thursday, a bipartisan bill was introduced in the House of Representatives to delay the implementation of the Medicare competitive bidding program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS).
The Medicare DMEPOS Competitive Acquisition Reform Act of 2008 (H.R. 6252) was introduced by House Ways and Means Health Subcommittee Chairman Fortney “Pete” Stark (D-CA); Ranking Member of the Subcommittee Dave Camp (R-MI); Ways and Means Chairman Charles Rangel (D-NY); Minority Leader John Boehner (R-OH); House Energy and Commerce Committee Chairman John Dingell (D-MI); and Energy and Commerce Health Subcommittee Chairman Frank Pallone (D-NJ).
Although the first round of competitive bidding is scheduled to begin on July 1, 2008, the House bill would delay the implementation of the program for 18 months. Additionally, the bill would exempt complex rehabilitation wheelchairs and negative pressure wound therapy from the competitive bidding program and establish a competitive bidding ombudsman at CMS to respond to beneficiary and supplier concerns and complaints.
The cost of the DME competitive bidding delay would be offset by fee schedule adjustments to ten major DME categories otherwise subject to competitive bidding.
HHS Announces Sites for Electronic Health Record Demonstrations
This week, The Department of Health and Human Services (HHS) announced the names of 12 sites that will participate in a five-year national Center for Medicare and Medicaid (CMS) Electronic Health Record (EHR) Demonstration Project.
The 12 sites – Alabama; Delaware; Jacksonville, Florida; Georgia; Maine; Louisiana; Maryland/DC area; Pittsburgh; South Dakota; Virginia; and Madison, Wisconsin - were selected from a pool of 30 applicants based on experience with EHRs within these communities.
The demonstration project provides incentive payments to physicians using certified electronic health records - including electronic prescribing - to improve the quality of care of their patients
Upcoming Events
Hearings/Events
Monday, June 16, 2008
Bipartisan Health Care Summit
Senate Finance Committee
Seminar/Conference
9:30 a.m., Madison Bldg., 101 Independence Ave. S.E.
Tuesday, June 17, 2008
ITEM Coalition Briefing
Policies Impacting Access to Assistive Devices and Technologies
For People with Disabilities and Chronic Conditions
2:30pm, 2105 Rayburn
For More Information
For further information on any topics discussed or publications listed, or to get copies of anything mentioned in this alert, please call 202.466.6550 and ask for the Legislative Practice Group.
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