Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE +
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
December 20, 2012 12:00 AM

Providers oppose House sequester measure

Jessica Zigmond
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Kahn

    Healthcare providers are lining up against legislation the House will vote on Thursday that would replace part of the mandatory federal spending reductions scheduled for 2013 while maintaining billions in Medicare cuts.

    As part of the ongoing fiscal-cliff negotiations, House Majority Leader Eric Cantor (R-Va.) introduced the Spending Reduction Act of 2012 (PDF), which would supplant one year of the sequester—the across-the-board spending cuts to defense and nondefense programs outlined in last year's Budget Control Act—with other spending cuts and an additional $200 billion in savings over 10 years. Payment cuts to Medicare, which the Budget Control Act capped at 2%, are scheduled to take place in early February, and Cantor's bill keeps those reductions in place.

    The legislation is similar to a bill the lower chamber passed in May to avert the sequester.

    “The Federation of American Hospitals supports postponing the Budget Control Act's (BCA) mandated sequestration,” Chip Kahn, president and CEO of the Federation of American Hospitals, said in a statement. “However, we strongly oppose H.R. 6684, which postpones only a portion of the BCA sequestration while leaving intact $11 billion in Medicare sequestration cuts in FY13 alone and imposing more than $15 billion in new Medicaid cuts.”

    Mark Parkinson, president and CEO of the American Health Care Association and the National Center for Assisted Living—which represents the nation's nursing homes and assisted-living providers—sent a letter to House members urging them to vote against the bill, which would also reduce the Medicaid Provider Assessment to 5.5% from its current level of 6%. Providers pay that tax to states to help fund their Medicaid programs.

    “This change will make it even harder for states to finance a program that is already underfunding nursing providers by $7 billion in 2012,” Parkinson wrote.

    The American Hospital Association reiterated that the automatic cuts to Medicare will cost thousands of U.S. jobs.

    “While the proposal calls for eliminating the sequester cuts for defense and veterans' programs, the Medicare sequester would remain in place,” Richard Umbdenstock, president and CEO of the American Hospital Association (PDF), said in a statement. “As a result, more than 766,000 healthcare and related jobs could be lost by 2021, according to a report released by the AHA, American Medical Association and American Nurses Association. In addition, it would reduce Medicaid payments for disproportionate share hospitals, and restrict the Medicaid provider assessment program.”

    Although Cantor said Thursday he expects the House to pass the legislation, Senate Majority Leader Harry Reid (D-Nev.) said he will not allow the Senate to take up the House sequester bill because it would not survive a veto by President Barack Obama.

    “We're not taking up anything they are working on over there right now,” Reid said at a Thursday news conference.

    Instead, Reid urged House Speaker John Boehner (R-Ohio) to return to talks on a comprehensive year-end deal with Obama and resolve differences that left them “only a couple hundred billion dollars apart” on a large deal.

    Separately, Sen. Charles Schumer (D-N.Y.), the third-ranking Democrat in the Senate, told reporters that a provision to avoid the looming 26.5% cut in Medicare physician payments “has to be included” in any final deal.

    Also Thursday, the House will vote on the GOP's “Plan B” tax plan that would extend current tax rates for Americans who make $1 million or less. Boehner announced that plan earlier this week, but it not address sequestration, which Cantor's spending package does.

    -with Rich Daly

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Biden COVID_i.jpg
    Biden to end COVID emergency declarations on May 11
    WHO_i.jpg
    COVID-19 still an emergency but approaching 'inflexion point,' WHO says
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare Alert: Sign up for this breaking news email to be kept in the loop as urgent healthcare business news unfolds.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE +
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing