Budget:
MEDICARE BUDGET BILL ADVANCES IN CONGRESS
Published on Tue May 27, 2008
HHAs' hopes for a rural add-on dim, but suppliers celebrate.
All eyes are on the U.S. Senate as the 10 percent cut to Medicare's physician pay rates looms.
After the Senate failed to vote on a Medicare package last week, the House passed its own version of a physician "fix" bill on June 24. The rate cuts will take effect July 1.
For HHAs: Like the earlier Senate bill proposed by Senate Finance Chair Max Baucus (D-MT), the House bill contains no home health agency or hospice cuts for 2008. But it fails to include the 5 percent rural add-on from that bill.
For suppliers: Durable medical equipment providers see a big advantage in the House bill versus the Baucus legislation. The House bill does not include cuts to oxygen and wheelchairs that the Baucus bill had.
The House bill also incorporates provisions from the legislation proposed last week to delay competitive bidding (see Eli's HCW, Vol. XVII, No. 22). Most notably, it calls for an 18-month delay to rounds one and two of bidding. Like the original bidding legislation, the delay is paid for by a 9.5 percent rate cut for bid items.
And the House bill repeals transfer of ownership for oxygen equipment, reports the American Association for Homecare.
"Victory #1 is under our belt," the National Association of Independent Medical Suppliers cheered after House passage of the bill. "Winning Victory #2 is now critical."
"AAHomecare strongly supports H.R. 6331," the trade group says.
Because the House bill relies mainly on Medicare Advantage plan cuts to fund the physician payment cut and other provisions, the Senate must pass companion legislation by a veto-proof majority to overcome a threatened presidential veto. But if the House vote is any indication, that shouldn't be a problem. Record numbers of Republicans sided against President Bush by voting for the bill 355-59.
At press time, the Senate was expected to vote on the legislation any day. If it passes, the President could sign it into law before July 1.
If the Senate doesn't have enough votes to override the threatened presidential veto, HHAs could still have a chance to lobby for and secure the 5 percent rural add-on, points out the National Association for Home Care & Hospice.
