Monday, May 18, 2009

Article from National HFMA Website Responding to Senate Finance Committee Papers on Health Reform

Monday, May 18, 2009
Senators Issue Policy Options for Financing Healthcare Reform

Senate Finance Committee Chairman Max Baucus and ranking member Chuck Grassley have released policy options for financing healthcare reform, recommendations that the rest of the committee will discuss on Wednesday before the Senate marks up legislation in June.

One potential funding source explored in the paper are savings achieved from within the healthcare system. The policy options look at three ways to adjust the annual inflationary increase to account for productivity in Medicare payment rate updates—reducing the inflationary update by an amount equal to all, one-half, or one-quarter of the expected productivity gains. The paper also recommends reducing geographic spending variations by cutting Medicare payments in areas where spending is above the national average. In addition, the paper suggests updating payment rates for home health services, which have the highest profit margin in Medicare, to be more reflective of actual costs of providing care; ensuring appropriate payments for durable medical equipment; adjusting payments for high-growth services such as imaging and minor procedures; and reducing market-basket updates for providers whose payments are higher than actual costs.

Another category of financing reform focuses on modifying the current tax treatment of health-related expenses to eliminate inconsistencies and discourage wasteful health spending. One of the policy options requires nonprofit hospitals to maintain a minimal level of charitable activity, limit charges to the uninsured and indigent patients, and curtail aggressive collection actions. Hospitals that do not meet these requirements would be subject to an excise tax. The paper also explores ways to make the tax exclusion for employer-provided health insurance more equitable and efficient, such as capping the exclusion based on the value of the health insurance policy or the income level of the employee. And a final source of funding are tax provisions to promote wellness, such as a tax increase on alcoholic beverages and an excise tax on sugar-sweetened beverages.

Public comments should be directed to Health_Reform@finance-dem.senate.gov by May 26.

AHA Official Comments to the Senate Finance Commitee

http://www.aha.org/aha/content/2009/pdf/090515-comments-del-system-reform.pdf

Wednesday, May 6, 2009

Baucus Draft Proposal on Healthcare Reform

Last week, Senate Finance Committee Chairman Max Baucus released a draft proposal on healthcare reform. It can be accessed here: http://finance.senate.gov/sitepages/leg/LEG%202009/042809%20Health%20Care%20Description%20of%20Policy%20Option.pdf

Tuesday, May 5, 2009

Washington Post Article

Here is an interesting article from the Washington Post on Obama's Healthcare agenda:

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/23/AR2009042302983.html

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