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Morning Briefing

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Thursday, Apr 16 2015

Full Issue

Medicare Changes In 'Doc Fix' Bill OK'd By Congress Has Benefits, Risks

News outlets analyze the various components of this legislation, which also includes renewed funding for state insurance programs for children and thousands of community health centers.

Dr. Robert Wergin, president of the American Academy of Family Physicians, made little effort to contain his glee Wednesday over the news that Congress had voted to end a reviled payment system for doctors, simultaneously averting a 21 percent physician pay cut and overhauling the way Medicare will pay doctors in the future. ... Then he added: 鈥淣ow, what next?鈥 ... Doctors and health policy experts have begun to take stock of the practical implications of the legislation, which seeks to move away from paying doctors solely on the volume of their services and toward reimbursing them based on the quality and value of the care they provide. Many said the legislation was short on details about how such quality will be measured, and others expressed apprehension about whether the system will be fair. (Thomas and Abelson, 4/15)

The historic compromise legislation passed by the Senate this week will overhaul the way Medicare pays physicians and will create new systems to reward high-performing doctors. The bill, which drew unusual bipartisan support in both chambers of Congress, also includes new funding for state insurance programs for children and for thousands of community health centers nationwide. (Levey, 4/15)

Though Tennessee hospitals are still smarting from the failure of Gov. Bill Haslam's attempt to expand Medicaid, they have found some consolation in a congressional bill passed Tuesday night that will bring $80 million in federal and state funding to hospitals each year for the next decade. "This doesn't take the sting out of Insure Tennessee, but it's still a major victory for Tennessee hospitals," said Craig Becker, president of the Tennessee Hospital Association. For many safety-net hospitals in Tennessee, the funding "can mean the difference between them having anything on their bottom line or being in the negative," Becker explained. "For some of our smaller rural hospitals it can mean keeping their doors open." (Belz, 4/16)

While they had reservations about some provisions of the bill, Sens. Richard Blumenthal and Chris Murphy joined an overwhelming majority in the U.S. Senate to approve a bill preventing a 21 percent cut in Medicare fees for doctors. (Radelat, 4/15)

Some Medicare doctors will still face a temporary 21 percent hit to their pay this month, even after Congress met the government鈥檚 Wednesday deadline to stave off the cuts. ... While Congress finalized the bill with several hours to spare before the deadline, CMS said in a notice to providers on Wednesday that some would face temporary cuts. Those providers will be reimbursed at a later date after CMS re-processes their claims. (Ferris, 4/15)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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