Medicare sequestration cuts extended to 2024

Hospitals are not happy that Congress voted last week to extend Medicare cuts under budget sequestration by one year, to 2024. Lawmakers extended the Medicare cuts to reverse a $6 billion cut to pension benefits for military veterans.

The legislation to replace the pension cut for veterans under age 62 with the extension of the Medicare sequester cut passed overwhelmingly in both the Senate and House, and President Barack Obama is expected to sign the bill.

Previously, House Republicans had considered tying the pension provision to a bill to raise the nation's borrowing authority. But House Speaker John Boehner (R-Ohio) opted to move forward with a clean debt-ceiling bill over the opposition of most Republicans. So the House passed the pension legislation separately after the debt-ceiling legislation was approved with mostly Democratic support.

Senate Democrats said they weren't entirely comfortable with extending the Medicare cuts. But they had previously proposed extending those cuts to pay for renewing long-term unemployment benefits.

Hospitals vainly sought to stop the extension of the sequestration cuts. “Medicare is meant to assure seniors access to needed medical care, not serve as a piggybank for other programs,” said a letter sent to legislators by the American Hospital Association, Federation of American Hospitals and seven other organizations. “It is bad policy to further extend Medicare sequester cuts that could undermine care for seniors.”

Just weeks ago, Congress passed legislation that cut the cost-of-living adjustment for veterans under the age of 62 by 1%. But cutting benefits for veterans is always politically perilous, particularly in an election year.

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