A Medicare Fight On Capitol Hill

A Medicare Fight On Capitol Hill in Politics and Legislation

UPDATE 6/30/08: The payment cuts will now be delayed until July 15, according to the Wall Street Journal (subscription required). The Centers for Medicare and Medicaid Services made the announcement today and gives Congress another two weeks to come to an agreement.

UPDATE 6/27/08: The bill stalled in the U.S. Senate in a procedural vote of 58 to 40 — two votes shy of bringing it to the Senate floor, wrote The New York Times.

ORIGINAL POST:

Lawmakers in Washington D.C. are in a battle over a Medicare bill, which prevents a 10 percent pay cut for doctors.

In other words, if Congress doesn’t pass blocking legislation by July 1, doctors who provide care for Medicare patients will be paid 10 percent less than they are today.

“If we fail to enact this legislation, physicians will face a 10 percent pay cut that jeopardizes access to care for seniors and the disabled,” said U.S. Representative John Dingell (D-MI).

Yesterday, the bill was approved by the U.S. House of Representatives in a lopsided and partisan vote of 355 to 59, reported the Washington Post.

The bill will soon go to the U.S. Senate for approval.

The White House and some Republican lawmakers mainly oppose the bill because it includes a provision that cuts payments to private insurance companies who offer Medicare Advantage plans. President George W. Bush said he would veto the measure.

Medicare Advantage plans are an alternative to original Medicare, where seniors can receive their medical benefits through private companies, rather than the federal government.

Insurers receive payments from the government to administer the Medicare Advantage plans, and many plans offer benefits not available with original Medicare.

As The New York Times reported, enrollment doubled for the Medicare Advantage plans after Republicans in the U.S. Congress increased private insurers’ payments. Today, over 10 million seniors have Medicare Advantage.

“[Medicare Advantage is] a good program that helps many low-income seniors,” said U.S. Representative Ginny Brown-Waite (R-FL).

Democrats argue that insurers are paid too much for Medicare Advantage plans, pointing to studies that show it actually costs the government more per person for Advantage plans than original Medicare.

The bill is expected to face stronger opposition in the Senate. It’s a familiar situation, where President Bush is likely to veto a measure and the bill’s supporters don’t have enough votes to overturn the veto.

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