Articles and Blogs

New Simpson-Bowles Plan Released On February 19, Alan Simpson and Erskine Bowles released a new framework for a deficit reduction plan hoping to split the difference between President Obama and House Republicans. The plan is based on the parameters set by the President and House Speaker Boehner (R-OH) last December.  It calls for $2.4 trillion in... READ MORE

Hospitals, Drug Industry Argue over Outpatient Drug Discounts On February 12, a coalition of pharmaceutical industry trade groups released a report on the 340B drug discount program.  The report questioned whether hospitals and other providers receiving the discount are doing enough to benefit patients and called for the drug discounts to be more narrowly focused. READ MORE

House Leaders Unveil SGR Repeal Framework The Chairmen with primary jurisdiction over the Medicare payment rates announced their plan to repeal and replace the current sustainable growth rate (“SGR”)  formula.  Ways and Means Chairman Camp (R-MI) and Energy and Commerce Chairman Upton (R-MI) announced they will work together to address the SGR. READ MORE

White House Advisor Says President Won’t Support Future Medicaid Cuts In an attempt to reassure states still weighing Medicaid expansion, President Barack Obama’s top economic adviser told health care leaders that his boss will not support cuts to the Medicaid program for the remainder of his presidency.  In a speech made at the Families... READ MORE

House Passes Bill to Suspend Debt Ceiling On January 23, the House passed a bill that would suspend the debt ceiling and allow the federal government to keep borrowing money until May 17. Both the Senate and the White House have indicated they will not block the House-passed measure. Notably, the bill (H.R. 325) requires... READ MORE

MedPAC Clarifies Position on Payment Update Late last week, the Medicare Payment Advisory Commission (“MedPAC”) reiterated its support for a 1% hospital payment update in FY 2014.  The commission that advises Congress on Medicare payment issues had been considering proposals that, if adopted, would have resulted in a negative payment update for hospitals following... READ MORE

MedPAC Votes on Final Recommendations for Hospital IPPS Update On January 10, the Medicare Payment Advisory Commission (“MedPAC”) voted on its 2014 reimbursement recommendations for hospitals.  The panel voted on recommending Congress to increase hospital payments by 1% for 2014.  The MedPAC recommendations will now be sent to Congress. The finalized recommendation for hospitals... READ MORE

Fiscal Cliff Deal Includes Substantial Hospital Payment Cuts The American Taxpayer Relief Act of 2012 (H.R. 8) was signed into law on January 2, 2013.  The so-called “fiscal cliff deal” extends current Medicare physician payment rates through December 31, 2013 and thus averts the 26.5% Sustainable Growth Rate (“SGR”) cut.  The deal also delays... READ MORE

Fiscal Cliff Update Late last night, House Speaker John Boehner (R-OH) canceled the vote on his “Plan B” alternative to avoid part of the fiscal cliff set to take effect on January 1. Given the stalemate in negotiations, Congress is leaving town for the Christmas holiday and will reconvene on December 27.  Despite the setback,... READ MORE

CMS Rejects Partial Medicaid Expansion and Drops Support for a Medicaid “Blended Rate” On Monday, CMS announced that states who expand their Medicaid programs to less than 133% of the federal poverty level will not receive the higher federal matching funds set forth in the Affordable Care Act (“ACA”).  The agency said that states... READ MORE