In a final report released Thursday, the bipartisan National Commission on Fiscal Responsibility and Reform outlined some recommendations that the American Hospital Association said could “jeopardize hospital services for vulnerable patients and communities.” The report follows a draft proposal that the commission released three weeks ago.
The commission recommended reforming the Medicare sustainable growth rate for physician payment and requiring that fix to be offset. To pay for the cost of the SGR fix and to recover lost receipts in the first decade of repealing the Community Living Assistance Services and Supports Act—which it also recommended—the commission proposed a number of savings measures, such as reforming Medicare cost-sharing rules; reducing excess payments to hospitals for medical education; and cutting Medicare payments for bad debts. The plan also suggested eliminating provider carve-outs from the Independent Payment Advisory Board, a commission established in the health reform law.
“While we appreciate the commission dropping cuts to the DSH program that provides funding to hospitals that serve a large population of poor and uninsured patients, we are very disappointed that a number of problematic provisions remain,” AHA President Richard Umbdenstock said in a statement. Umbdenstock said subjecting hospitals to the IPAB “flies in the face of congressional intent and removes lawmakers from decisions that will affect healthcare in their community.”
The 18-member, bipartisan commission of both congressional and non-congressional leaders will vote this Friday on the final report, which requires the approval of at least 14 members. (Please see a related blog post.)