Budget deal includes proposed cuts to Medicare payments

Shannon Muchmore | October 27, 2015

A two-year $80 billion federal budget deal that could be announced as early as Tuesday would include continuing sequester spending cuts and limit future payment rates for hospitals that set up or buy off-campus facilities, a healthcare lobbyist said Monday.

The deal, not yet finalized, would also reportedly raise the federal borrowing limit and prevent a looming spike in premiums for about 30% of Medicare Part B beneficiaries.

Among the proposed healthcare spending cuts, predicted to pay for $25.8 billion in the budget, are an extension of a 2 percentage-point cut in Medicare payments to doctors and hospitals through the end of a 10-year budget.

The budget side of the deal is aimed at undoing automatic spending cuts that are a byproduct of a 2011 budget and debt agreement, and the failure of Washington to subsequently tackle the government’s fiscal woes. GOP defense hawks are a driving force, intent on reversing the automatic cuts and getting more money for the military. A key priority for Democrats is to boost domestic programs.

Lawmakers have until Nov. 3 to increase the debt ceiling and until Dec. 11 to approve a broader budget deal.

House Speaker John Boehner is pushing an agreement before relinquishing his position later this week. Rep. Paul Ryan (R-Wis.) is expected to be installed as the new leader of the House majority on Thursday.

But whether the deal succeeds depends in great measure on the reception it gets from restive House Republicans, including the arch-conservatives who forced the Ohio Republican out.

“This is again just the umpteenth time that you have this big, huge deal that’ll last for two years and we were told nothing about it and in fact even today, were not given the details,” said Rep. John Fleming (R-La.). “And were probably going to have to vote on it in less than 48 hours.” A vote could come as early as Wednesday in the House.

The measure was to be discussed further at a GOP meeting Tuesday morning.

Source:  Modern Healthcare

http://www.modernhealthcare.com/article/20151027/NEWS/310279993