Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • 40 Under 40
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 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
    • - Hospital at Home
    • - Workplace of the Future
    • - AI and Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
March 25, 2015 12:00 AM

CBO's take on doc-fix bill unlikely to derail it

Paul Demko
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    The doc-fix deal would increase the deficit by $141 billion compared with current law over the next decade, according to an analysis by the Congressional Budget Office released Wednesday.

    But spending would actually be $900 million less over that same period than if Congress simply froze Medicare payments rates for physicians over the same span.

    The report is likely to provide fodder for both sides in the debate over permanently repealing Medicare's sustainable growth-rate formula for paying doctors. Opponents of the deal will seize on it as evidence that the plan is financially irresponsible. Supporters of the repeal package will point to the findings to support claims that it fixes an entrenched problem with substantive reforms.

    “It doesn't change anything in either direction,” said Joe Antos, a healthcare policy expert at the conservative American Enterprise Institute, who opposes the SGR repeal package. “I think the bill is going to pass.”

    The deal negotiated by House Speaker John Boehner and Minority Leader Nancy Pelosi is expected come up for a vote on Thursday in the House and will almost certainly pass. Its fate in the Senate remains uncertain as Senate Democrats have balked at some of the terms. But there seems to be increasing momentum behind the bill. If Congress doesn't take action by the end of the month, Medicare payments to doctors would drop by 21.2%.

    President Barack Obama offered support for the initiative during remarks at the White House on Wednesday. “I have my pen ready to sign a good bipartisan bill," he said. And the Obama administration subsequently came out with a “statement of administrative policy” officially backing the deal.

    Sen. Orrin Hatch (R-Utah), chair of the Senate Finance Committee, also endorsed the deal in a floor speech on Wednesday. “The time to act is now,” Hatch said. “I can't imagine another bipartisan opportunity like this coming around again anytime soon.”

    The CBO typically only looks at how legislation would affect spending as compared to current law. But at the behest of the House, the nonpartisan agency also scored how the doc-fix deal would compare to freezing current payment rates.

    That's a reasonable assumption given that Congress has acted 17 straight times over more than a decade to keep the SGR formula from taking effect and causing steep cuts in payments to doctors. Since 2003, annual updates to payment rates have ranged from a freeze to a 2.2% increase, according to the CBO.

    The budget agency also looked at the effect the legislation would have over the second decade, which is typically beyond CBO projections. Those findings came with a caveat: “Considerable uncertainty exists about the evolution of the healthcare delivery and financing system that far in the future, so a precise estimate is not feasible,” CBO wrote. But the agency did conclude that the legislation would result in “small net savings” compared with freezing Medicare payment rates for doctors over the next two decades.

    The CBO also determined that the doc-fix deal would have only a marginal effect on Medicare Part B premiums. Under current law, monthly premiums for most Medicare beneficiaries are expected to increase from $105 to $171 by 2025. CBO anticipates that the SGR repeal legislation will add an additional $10 to that increase over the next decade. By comparison, freezing payment rates would increase monthly premiums by an additional $7.50 compared to current law.

    The CBO also looked at the revenue-raising and cost-saving components of the House legislation, totaling $73 billion. Nearly half of that amount, $34.3 billion, comes from raising premiums for Medicare beneficiaries with incomes of at least $133,000.

    Cuts to post-acute-care providers are expected to generate $15.4 billion over a decade, while hospitals will lose nearly $20 billion in anticipated funding. Making the Transition Medical Assistance program permanent—which helps individuals transitioning between Medicaid and private health plans—is expected to save $2.8 billion over a decade. The spending on the transition program would be offset by reduced costs for other federal healthcare programs such as exchange subsidies.

    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
    congress prescription drugs
    PBMs, Big Pharma face off in House hearing
    Biden COVID copy_i_i.jpg
    Biden administration asks employers to help more workers who lose Medicaid
    Most Popular
    1
    Centene to lay off 2,000 workers
    2
    How health systems are battling price-gouging allegations
    3
    Senate advances bill to temporarily aid hospitals, health centers
    4
    Elevance, Blue Cross Louisiana halt $2.5B proposed deal
    5
    Tower Health to sell urgent care centers, close others
    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
    • Help Center
    • Advertise with Us
    • 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
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • 40 Under 40
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 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
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing