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Home » Obama’s Medicare doc fix could cost $63 billion

Obama’s Medicare doc fix could cost $63 billion

March 11, 2011 By MassDevice staff

MassDevice On Call

MASSDEVICE ON CALL — The so-called “doc fix” in President Barack Obama’s 2012 budget could cost as much as $63 billion, according to officials at the Centers for Medicare and Medicaid Services.

Late last year Congress passed a one-year reprieve to looming rate cuts mandated by the Deficit Reduction Act of 2005, the 11th time in eight years legislators have voted to block what amounts to a pay cut for physicians.

Obama’s budget would avoid further cuts for two years — the reimbursement rate is slated for a nearly 30 percent cut effective Jan. 1, 2012 — and cover those costs by reducing the Medicaid provider tax threshold, reducing Medicaid reimbursement for durable medical equipment and creating faster routes to market for generic drugs.

But that budget relied on a 28.3 percent cut to make its calculations. According to CMS, the rate cut next year is actually 29.5 percent, which would add a billion dollars to the budget proposal’s $62 billion set-aside, according to The Hill’s Healthwatch blog.

And that, in turn, means the 10-year tab for the doc fix is likely to be much, much higher than the $369.8 billion estimate in the Obama budget.

Health care reform debate rages on in Washington

Democrats and Republicans inside the Beltway continue to squabble over the health care reform law, with the Dems touting a Congressional Budget Office report that a GOP move to de-fund the law would boost the deficit by $5.7 billion over the next decade. For their part, Republicans are highlighting the $1.4 billion their move, sponsored by Rep. Denny Rehberg (R-Mont.), would shave from the deficit this year and pooh-poohing the CBO report:

“Once again, Republicans have exposed their hypocrisy on reducing the deficit. In a bill they claim cuts government spending, the Rehberg Amendment would increase deficit by $5.7 billion,” – Rep. Pete Stark (D-Calif.)

“When you strip away all of the spin, and warnings that defunding ObamaCare this year would cost money, you’re left with the truth: $1.4 billion in savings this year. Only in Washington would someone actually buy the claim that it costs money not to spend money.” – Rep. Denny Rehberg (R-Mont.)

In other health care reform news:

  • Feds detail waiver process for states: Federal officials issued new guidance to states yesterday on the process for opting out of the Patient Protection & Affordable Care Act.
  • Small employers, big business face off: Smaller employers who favor the health care reform act faced off against big business, in the form of the U.S. Chamber of Commerce, at a House subcommittee meeting yesterday.
  • House Republicans angle for White House probe: The House Energy & Commerce Committee continues to push for answers from the White House about its dealings with outside lobbying groups during the negotiations over the health care law. The administration last week shot down the committee’s request for in-depth details about the meetings; now the committee says the White House has until March 18 to cough it up or possibly face subpoenas.
  • States appeal health care reform ruling: Florida and 25 other states say they will appeal the parts of a ruling that the health care reform law is unconstitutional that went against them. Judge Roger Vinson of the U.S. District Court for Northern Florida decided that the law’s individual mandate invalidates the law, prompting the Obama administration to appeal this week. Now the states say they’ll look to overturn the portions of the ruling that are unfavorable to them.

Coffee may cut stroke risk in women

Drinking coffee may help reduce the risk of stroke in women, according to a study in Stroke: Journal of the American Heart Assn.

Women who drank more than one cup of joe a day had a 22 percent top 25 percent lower risk of stroke than abstainers, according to the study of 34,670 women. A Swedish researcher tracked the women, who were between the ages of 49 and 83, for an average of 10 years.

Independent panel harshes the W.H.O. over Swine Flu

An independent panel had harsh words for the World Health Organization’s handling of the H1N1 influenza pandemic in 2009.

“The world is still unprepared to handle a severe pandemic, and if a more dangerous virus emerges, ‘tens of millions would be at risk of dying,'” according to the New York Times.

Coping with daylight savings time

Clocks spring ahead an hour this weekend, meaning we’ll all lose an hour of sleep. Here’s a handy list of things you can do to get over the jet-lag-like symptoms — as long as you’re willing to rise with the sun.

Filed Under: Healthcare Reform, News Well

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