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Committee on Ways and Means

For Immediate Release
Contact: Press Office 202-225-8933
May 29, 2002

Medicare Proposal Supported by Hospital Groups

WASHINGTON -- Today, Chairman Bill Thomas (R-CA) and Health Subcommittee Chairman Nancy Johnson (R-CT) made the following statement about the progress of negotiations with the hospital community on Medicare provider payments.

“We’re very pleased to announce that we have reached an agreement with the American Hospital Association and the Federation of American Hospitals on Medicare provider payments,” said Chairman Thomas. “The agreement will increase funding to all hospitals by about $9 billion over 10 years, and will particularly help struggling hospitals in rural and small urban areas.”

"These increases in payments will help hospitals meet the rapidly rising costs of providing quality care. In certain areas where there are high percentages of seniors, these payment changes will help maintain access to care,” said Subcommittee Chairman Johnson.

Chairman Thomas and Subcommittee Chairman Johnson are developing legislation with the Energy and Commerce Committee that will provide a drug benefit for seniors while also taking steps to improve Medicare. The agreement reached with the hospital groups is part of the comprehensive Medicare proposal that is expected to be unveiled in June.


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