White House officials said that President Bush would likely veto a Medicare bill if it cuts payments to Medicare Advantage plans, raises taxes or otherwise overturns White House-favored health policies in order to avert a scheduled 10% reduction in physician reimbursement.
In a letter sent to Senate leaders, HHS Secretary Mike Leavitt said the administration wants to see a legislative package that includes payment incentives to physicians who adopt health information technology and who practice the highest quality of care.
“I write to reiterate the administration’s commitment to strengthen and improve Medicare, and to ensure our nation’s seniors continue to have access to—and choices among—high-quality benefits,” Leavitt stated.
The letter also highlights presidential deal-breakers sure to spark yet another showdown between Congress and a White House that has become increasingly active in preserving its healthcare legacy.
Though a bill hasn’t been finalized, sources familiar with a preliminary package said the finance committee was considering up to about $14 billion in Medicare Advantage cuts and paring down payments to the private plans that participate in the program. On average, those plans are paid about 12% more than traditional fee-for-service options.
Rep. Pete Stark (D-Calif.), chairman of the Ways and Means Health Subcommittee, sharply rebuked the administration, calling Bush “a wholly owned subsidiary of the insurance industry.” -- by Matthew DoBias
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