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Subject: Health Care Update
Dear Friends of Prosperity,
I thought you would all like an update on the health debate:
HEALTHCARE
* Lieberman Rules Out Voting for Health Bill: In a surprise setback for Democratic leaders, Senator Joseph I. Lieberman, independent of Connecticut, said on Sunday that he would vote against the health care legislation in its current form… In hopes of placating opponents of abortion, Mr. Reid is also considering an increase in the federal tax credit for adoption of children and a new program to provide services to pregnant high school and college students. (NYT, 12/14).
http://www.facebook.com/l/51e4b;www.nytimes.com/2009/12/14/health/policy/14health.html?ref=todayspaper
* Democrats, Lieberman List U.S. Health Bill Demands: Also today, a memo released by the nonpartisan Congressional Budget Office raised questions about a Democratic proposal to require insurance companies to spend 90 percent of the premiums they receive on health care rather than on administrative or other expenses. The agency said such a requirement may be so intrusive that it might cross a line between private sector programs and what is considered a government program that must be incorporated into the federal budget… The CBO's letter said lowering insurers' required health- care spending level to 85 percent may be enough to avoid crossing the line (Bloomberg, 12/13).
http://www.facebook.com/l/51e4b;www.bloomberg.com/apps/news?pid=20601070&sid=aH.26srnx9hM
* Lieberman, Nelson: Public-option Compromise Still Not Good Enough: Speaking on "Fox News Sunday," Sen. Claire McCaskill (D-Mo.) said she would not vote for any bill that doesn't reduce the deficit and bring down healthcare costs. If those two criteria aren't met, "we'll have to go back to the drawing board," she said. (The Hill, 12/13).
http://www.facebook.com/l/51e4b;thehill.com/homenews/senate/71967-lieberman-nelson-public-option-compromise-still-cause-for-concern
* Disputes Threaten '09 Passage of Health Bill: By mid-week, Senate Majority Leader Harry M. Reid (D-Nev.) must begin the process of ending debate on the bill or risk missing his deadline of final passage by Christmas, pushing the contentious health-care debate into early 2010…Most of the undecided lawmakers have refused to commit until the CBO delivers a cost analysis on the coverage alternatives offered last week… The first test will come Monday, when the Senate resumes consideration of an amendment offered by Sen. Byron L. Dorgan (D-N.D.) to allow cheaper prescription drugs to be imported from Canada and other countries. The idea has broad bipartisan support. But approval of Dorgan's amendment could jeopardize an agreement the White House struck with drug makers this year (Washington Post, 12/14).
http://www.facebook.com/l/51e4b;www.washingtonpost.com/wp-dyn/content/article/2009/12/13/AR2009121303084.html
* PHRMA Renegotiating Its Deal?: The pharmaceutical industry is negotiating with the White House and lawmakers on a revised health care deal under which the industry would ante up cuts beyond the $80 billion it agreed to this summer, possibly by agreeing to policies that would further shrink the Part D doughnut hole, according to Washington lobbyists…Several lobbyists told Inside Health Policy they've heard that the Pharmaceutical Research and Manufacturers of America may have already reached a deal with the White House and AARP to close the Senate bill's coverage gap by 75 percent, versus the 50 percent under the current bill. (Inside Health Policy via Politico, 12/14).
http://www.facebook.com/l/51e4b;www.politico.com
* High Hurdles Ahead for Health Plan: Most insiders agree that Democrats have until Thursday to work out their differences if they want to pass a bill by Dec. 23. It will take at least five or six days after Democrats move to end debate before they can vote on the bill. Democrats expect to begin the endgame early this week and still sound optimistic that they can get it done. (Politico, 12/14).
http://www.facebook.com/l/51e4b;www.politico.com/news/stories/1209/30554.html
* Two Senators Doubt Medicare Compromise: Sens. Joe Lieberman (I., Conn.) and Ben Nelson (D., Neb.) on Sunday voiced strong doubts about the Medicare proposal, which would allow individuals as young as 55 to buy into the program. (WSJ, 12/14).
http://www.facebook.com/l/51e4b;online.wsj.com/article/SB126075698805190017.html
* Medicare Cuts Could Hurt Hospitals, Expert Warns: In a report Friday, Rick Foster, chief actuary for the Centers for Medicare and Medicaid Services, questioned the sustainability of many of the proposed cuts… He warned that many institutions might drop Medicare, "possibly jeopardizing access to care for beneficiaries." Moreover, he wrote, simulations by his office suggest that 20 percent of institutional medical providers would become unprofitable within a decade. (Washington Post, 12/12).
http://www.facebook.com/l/51e4b;www.washingtonpost.com/wp-dyn/content/article/2009/12/11/AR2009121102792.html
* Senate Reform Bill to Hike Health Spending, Extend Medicare Trust Fund's Life, CMS Says: Health care reform legislation under consideration by the Senate (H.R. 3590) would increase total national health care spending by $234 billion, or 0.7 percent, over 10 years, over current law due to increased use of health care services by newly covered individuals, according to the chief actuary of the Centers for Medicare & Medicaid Services. The increase in national health care expenditures also reflects lower payments to health care providers for those newly enrolled in Medicaid and lower payments for Medicare services associated with policy in the bill, CMS said in a Dec. 10 analysis. (BNA, 12/14).
* Long-Term Care Is Latest Issue in Health Care Debate: Advocates for older Americans and people with disabilities see the program as a long-overdue effort to address needs that will explode as baby boomers age. It is meant for people with severe disabilities who want to live in the community, though the benefits could also be used to help pay for nursing home care or assisted living. But critics say that the program is unsustainable and that it could ultimately create serious fiscal problems for the government. (NYT, 12/14).
http://www.facebook.com/l/51e4b;www.nytimes.com/2009/12/14/health/policy/14care.html?ref=todayspaper
* Exclusive: The White House Council of Economic Advisers Chair Christy Romer will hold a conference call today to explain a new report that shows how health insurance reform legislation will lower health care spending in both the public and private sectors, reduce premiums, increase wages and provide substantial benefits to the economy. (Politico, 12/14).
http://www.facebook.com/l/51e4b;www.politico.com
* A Senator's Moral Dilemma on Health Bill: Casey and Senate Majority Leader Harry M. Reid (D-Nev.) are negotiating with the White House over language that would satisfy Nelson as well as abortion-rights supporters. One alternative is a proposal from Rep. Brad Ellsworth (D-Ind.) that would require the health secretary to use private contractors to divide premiums for elective abortions under the public option from other amounts paid to the federal government. (Washington Post, 12/12).
http://www.facebook.com/l/51e4b;www.washingtonpost.com/wp-dyn/content/article/2009/12/11/AR2009121103455.html
* MedPAC Suggests Full Hospital Update, Need to Recoup Possible Overpayments: Hospitals could receive the full Medicare marketbasket inpatient and outpatient payment update for fiscal year 2011 under a draft recommendation proposed Dec. 10 by the Medicare Payment Advisory Commission. MedPAC commissioners also discussed the need to adjust hospital payments to recover overpayments that resulted from coding and documentation changes. (BNA, 12/14).
* Private Medicare Plans in 2010 Will Be Paid 13 Percent More Than Traditional Medicare: Early data on the 2010 Medicare Advantage program show that MA plans overall will be paid on average 113 percent of traditional Medicare, or 13 percent above fee-for-service levels, analysts for the Medicare Payment Advisory Commission said Dec. 11. (BNA, 12/14).
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