Medicare Bill Passes - Congress Overrides Presidents Veto
July 21, 2008
Last week, Congress voted to override President’s Bush’s veto of the Medicare Improvements for Patients and Providers Act (H.R. 6331). This legislation averts the 10.6% cut in Medicare physician reimbursement in 2008 and 5% cut in 2009. The bill also includes a provision to create a pulmonary and cardiac rehabilitation benefit in Medicare. Both wins are significant for the respiratory community.
The bill replaces the 10.6% cut in Medicare physician payments that started on July 1, 2008 and replaces it with a 0.5% update for the remainder of 2008 and a 1.1% update for 2009. However the legislation does not fix the underlying payment formula that is causing all cuts in Medicare physician payments. Congress will need to address that issue to avert additional cuts in 2010 and beyond.
The legislation creates a benefit category for pulmonary rehabilitation in Medicare statute, starting January 1, 2010. Establishing a pulmonary rehabilitation benefit in the Medicare statute will create a national coverage policy of pulmonary rehabilitation – eliminating the state by state coverage policies that have lead to coverage variations and barriers to pulmonary rehabilitation services for many Medicare beneficiaries.
The legislation also ends the mandatory title transfer of oxygen equipment to Medicare beneficiaries. Prior Medicare legislation required that ownership of oxygen durable medical equipment be transferred to Medicare beneficiaries after 3-years of use. The legislation just passed by Congress rescinds this requirement.
The bill also delays expansion of the Medicare competitive bidding program for durable equipment by two years [actually, 18 months]. In exchange for the two year delay in competitive bidding expansion, the durable medical equipment industry will see a 9.5% across the board cut in Medicare payment for equipment included in the competitive bidding program – including oxygen equipment.
RESEARCH
Senate Appropriations Committee Increase VA Research Funding
The Senate Appropriations Committee gave the VA research program $526.8 million as part of the FY07 Military Construction/VA Appropriations bill.
This is a $46.8 million increase over FY08 funding and is $86.8 million above the Presidents request.
The House Appropriations Committee passed similar legislation earlier this summer providing $500 million (+$20 million) for the VA research program.
The ATS has recommended that Congress provide $555 million (+$75 million) in VA research funding to meet the diverse research needs of the VA community.
The ATS will continue to advocate for a significant increase in the VA research program.
Source:
COPD-ALERT: ATS Washington Letter – July 18, 2008