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House SGR/CHIP Deal Enhances Health Care Affordability

March 18, 2015 By Larry McNeely

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“Congress now has the opportunity to strengthen Medicare and end the annual need to cut the program to avoid drastic physician reimbursement reductions. Speaker Boehner and Leader Pelosi have crafted a framework that, over time, can make health care more affordable–for families and the country as a whole. Without action, Medicare physicians will see their reimbursement slashed, children could see their coverage taken away, and an outmoded fee-for-service system will continue to drive up the cost of health care.

“The House strategy is to pair a repeal of threatened  provider cuts with real, long-term reform. The full legislative package would:

  • Move Medicare past its current fee-for-service system by encouraging physicians to embrace new care and payment models, which are driving down costs in the private sector;
  • Introduce new transparency reforms that will help Americans know exactly what they’re paying for at the hospital and doctor’s office;
  • Preserve CHIP and its investments to ensure the next generation is healthier (and less costly long-term);
  • Make permanent beneficiary protections for those moving from welfare into a job or for those who make under $15,750 a year; and
  • Yield substantial reductions in federal spending over the next two decades… without broad-based cuts to benefits or increases to original Medicare’s deductibles.

These are important legislative achievements.

“But in Washington as in life, nothing good comes free. Those physicians who prosper simply by ordering more procedures and tests will have to accept having a greater share of their reimbursements tied to value. The hospital and nursing home industries will have to accept $30 billion in lower payments over ten years.  And, it may be that 2% of Medicare beneficiaries who make more than $133,000 a year will have to accept a higher premium, and, beginning in 2020, that those who purchase certain new Medigap policies will have to shoulder a small deductible in their supplemental plan.

“NCHC has repeatedly urged Congress to pursue offset alternatives that achieve savings through better care, not shifting costs. And over the next few days, we will continue working with our member organizations to ensure final legislation does more to curb wasteful or unnecessary costs and offer the best possible deal for kids and seniors.

Failure to act now will only increase the cost of a solution later—for taxpayers and beneficiaries. If you’re a working parent who needs CHIP to keep your kid covered, or if you’re a senior who wants your Medicare to be there for the long haul, you need this deal to get done. These important reforms must not wait.”

See full press release: https://www.nchc.org/house-sgrchip-deal-enhances-health-care-affordability/

Filed Under: Press Releases

House SGR/CHIP Deal Enhances Health Care Affordability

March 18, 2015 By Larry McNeely

March 18, 2015

Contact:   Kelly Peuquet
                 National Coalition on Health Care
                 kpeuquet@nchc.org
                 202-638-7151, ext. 114

House SGR/CHIP Deal Enhances Health Care Affordability for Families and the Nation
Statement by National Coalition on Health Care President and CEO John Rother

“Congress now has the opportunity to strengthen Medicare and end the annual need to cut the program to avoid drastic physician reimbursement reductions. Speaker Boehner and Leader Pelosi have crafted a framework that, over time, can make health care more affordable–for families and the country as a whole. Without action, Medicare physicians will see their reimbursement slashed, children could see their coverage taken away, and an outmoded fee-for-service system will continue to drive up the cost of health care.

“The House strategy is to pair a repeal of threatened  provider cuts with real, long-term reform. The full legislative package would:

  • Move Medicare past its current fee-for-service system by encouraging physicians to embrace new care and payment models, which are driving down costs in the private sector;
  • Introduce new transparency reforms that will help Americans know exactly what they’re paying for at the hospital and doctor’s office;
  • Preserve CHIP and its investments to ensure the next generation is healthier (and less costly long-term);
  • Make permanent beneficiary protections for those moving from welfare into a job or for those who make under $15,750 a year; and
  • Yield substantial reductions in federal spending over the next two decades… without broad-based cuts to benefits or increases to original Medicare’s deductibles.

These are important legislative achievements.

“But in Washington as in life, nothing good comes free. Those physicians who prosper simply by ordering more procedures and tests will have to accept having a greater share of their reimbursements tied to value. The hospital and nursing home industries will have to accept $30 billion in lower payments over ten years.  And, it may be that 2% of Medicare beneficiaries who make more than $133,000 a year will have to accept a higher premium, and, beginning in 2020, that those who purchase certain new Medigap policies will have to shoulder a small deductible in their supplemental plan.

“NCHC has repeatedly urged Congress to pursue offset alternatives that achieve savings through better care, not shifting costs. And over the next few days, we will continue working with our member organizations to ensure final legislation does more to curb wasteful or unnecessary costs and offer the best possible deal for kids and seniors.

Failure to act now will only increase the cost of a solution later—for taxpayers and beneficiaries. If you’re a working parent who needs CHIP to keep your kid covered, or if you’re a senior who wants your Medicare to be there for the long haul, you need this deal to get done. These important reforms must not wait.”

###

The National Coalition on Health Care (NCHC), the oldest and most diverse group working to achieve comprehensive health system reform, is a 501(c)(3) organization representing more than 80 participating organizations, including medical societies, businesses, unions, health care providers, faith-based associations, pension and health funds, insurers and groups representing consumers, patients, women, minorities and persons with disabilities. Member organizations collectively represent – as employees, members, or congregants – over 100 million Americans.

Some members of NCHC do not, or cannot, take positions either on specific legislation, strategies or on any policies outside their respective mission areas. However, all that can, do endorse broad policy positions in support of comprehensive health system change.

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To bring together key stakeholders in order to achieve an affordable, high-value health care system for patients and consumers, for employers and other payers, and for taxpayers.

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National Coalition on Health Care

About Us

The National Coalition on Health Care (NCHC) was formed more than two decades ago to help achieve comprehensive health system change. We aim to be a leader in promoting a healthy population and a more effective, efficient and responsive health system that provides quality care for all. NCHC is a nonpartisan, nonprofit organization of organizations. Our growing Coalition represents more than 80 participating organizations, including medical societies, businesses, unions, health care providers, faith-based associations, pension and health funds, insurers, and groups representing consumers, patients, women, minorities and persons with disabilities. … Read More...

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To bring together key stakeholders in order to achieve an affordable, high-value health care system for patients and consumers, for employers and other payers, and for taxpayers.

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