Doctors, Hospitals Likely to Avoid Cuts

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Doctors, Hospitals Likely to Avoid Cuts

Under pressure from health care lobbyists, the House recently decided to increase Medicare payments to providers. Higher payments to hospitals, doctors, nursing homes, Health Maintenance Organizations, and home health care agencies are included in the House Republican Medicare prescription drug legislation.

Members of Congress from both parties in the Senate and House had previously said new drug benefits and increased payments to providers must come from the same limited source. House Republicans would spend a total of $350 billion over 10 years for both. The Democrat-controlled Senate, however, is willing to spend $500 billion over ten years for a prescription drug benefit and deal with provider issues separately.

Sources: “Hospitals May Gain from Medicare Bill,” Janelle Carter, The Associated Press, June 5, 2002. “House Republican Plan Would Increase Medicare Payments to Providers,” Robert Pear, “The New York Times,” June 5, 2002.

For related articles, see “Nursing Homes Lack Adequate Staff” at http://www.tscl.org/NewContent/101494.asp and “Doctors Refuse New Medicare Patients” at http://www.tscl.org/NewContent/101523.asp.

September 2002