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Medicare Funding Restored The only Medicare legislation passed in the fiscal year 2000 budget was a package that returned about $16 billion previously trimmed from Medicare payments to hospitals, nursing homes, those who provide rehabilitative services, and other caregivers. Changes made to Medicare in the Balanced Budget Act of 1997 were estimated by the Congressional Budget Office (CBO) to reduce projected spending by $112 billion, or 8%, over five years. Now it appears that the savings will exceed twice that amount, an indication that the cuts may have gone too far. Among changes that would affect Medicare recipients most directly are: 1. A $1,500 cap that limited coverage for speech and physical therapy, a combination often needed by those recovering from stroke would be raised to $1,500 for each type of therapy. 2. Patient co-payments for hospital outpatient care, which currently vary widely and often exceed Medicare's standard 20 percent co-pay, would be limited to the same amount as the deductible for inpatient care, $776 in 2000. 3. Medicare recipients who lose their Health Maintenance Organization (HMO) coverage would have more flexibility to enroll in another one or to buy Medigap insurance. They could choose to stay in their HMO if it still serves other nearby areas and they are will to travel to use network doctors. 4. Medicare payments for Pap smears would rise to ensure access to the latest technology. Source: "House Oks Hospital Medicare Hike," Alice Ann Love, The Associated Press, November 5, 1999. This article first appeared in Volume 5, Issue 3 of "The Social Security and Medicare Advisor" newsletter (February/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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