Democrats to write their own bill for Medicare/ Medicaid Fix

05/21/2008
Baucus: No Bipartisan Deal For Medicare Payment Fix
by Anna Edney


Senate Finance Chairman Max Baucus has ruled out the possibility of reaching a bipartisan compromise on legislation to prevent Medicare physicians from taking a pay cut, saying today Democrats would move forward with their bill that will include offsets staunchly opposed by the White House. "It seems clear to me that we're not going to get agreement in time to meet the deadline," Baucus said after a meeting with Finance Committee members. The pay cut is set to take effect July 1. Republicans offered Democrats a counterproposal, but Democrats appear to have walked away from the table without giving the GOP an answer, a Republican aide said. The Republican offer included $10 billion in private Medicare Advantage cuts as well as marketing restrictions for the private plans and beneficiary improvements totaling $3 billion, a GOP aide said. Baucus was unsure how much his bill might cost, but previously estimated between $15 billion and $18 billion.Baucus said that the bill, which he will work on over Memorial Day recess, will prevent the 10 percent physician pay cut for 18 months and include an increase. Baucus was not sure what the pay increase would be but characterized it as "a little bump." The bill will be paid for through cuts in Medicare Advantage private fee-for-service and indirect medical education, offsets that are likely to draw a veto. The private fee-for-service plans are paid more than traditional Medicare plans to provide extra benefits, while indirect medical education payments are made to teaching hospitals but considered duplicative. The administration refuses to greenlight cuts to any private plans. "They're afraid of the White House," Senate Finance Health Subcommittee Chairman John (Jay) Rockefeller, D-W.Va., said of Republicans. "All they think about is will this get vetoed or not. They never think about will this help patients [and] beneficiaries."Baucus said the Democrats' bill will include electronic prescribing requirements and changes to an asset test for low-income beneficiaries to qualify for prescription assistance. The bill also will have a provision that pharmacy groups pushed for to require pharmacy benefit managers to reimburse pharmacies for Medicare prescriptions more quickly than the current payment period of 30 days or sometimes longer. Baucus expects the Democrats' bill to bypass the committee and go straight to the floor. Finance ranking member Charles Grassley said today he still will attempt to reach a compromise. If that does not happen, Grassley said, Republicans will offer their own proposal.