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SUBCOMMITTEES: Privacy, Copyright, and Permission to Link Statement |
Committee
on Ways and Means
FOR IMMEDIATE RELEASE
WASHINGTON, DC – In a bipartisan letter to Thomas Scully, Administrator of the Centers for Medicare and Medicaid Services (CMS), Ways and Means Committee Chairman Bill Thomas (R-CA), Health Subcommittee Chairman Nancy Johnson (R-CT), and Health Subcommittee Ranking Member Pete Stark (D-CA) have proposed a list of targeted solutions to protect seniors’ access to new technologies and outpatient services such as cancer treatments, as well as to ensure the integrity of the Medicare program. By law, CMS must implement a substantial reduction (60 to 80 percent) to hospital outpatient payments for critical pharmaceuticals, biologics, and technology services to stay within the mandated 2.5 percent cap, beginning January 1, 2002. "The targeted solutions we are offering will address this unintended consequence of the Balanced Budget Refinement Act of 1999," said Chairman Thomas. "CMS needs more time to develop adequate and appropriate Medicare payments for these services, reducing the need to lower payments. We have proposed that the Administration postpone any action until April 1, 2002. Seniors and hospitals will not be negatively affected by the delay." "We are advocating for changes in the way Medicare pays for new treatments and technologies - like cutting-edge cancer therapy - to increase their availability to seniors," stated Health Subcommittee Chairman Johnson. "There are problems in the way these payments are calculated that pose barriers to providing them in outpatient settings. This needs to be addressed so that seniors have better access to high quality health care." "Taking steps to move technology payments into the base rate and switching to acquisition costs are important steps toward fulfilling the original intent of the outpatient prospective payment system. However, we must be certain that beneficiaries are held harmless while these changes occur. Fortunately, CMS has advised us that reductions in beneficiary co-payments for hospital outpatient services will proceed in a fashion that assures savings to beneficiaries, consistent with Congressional intent," said Health Subcommittee Ranking Member Stark. Click on the link for a copy of the letter. |