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Plan in the works for Medicare reimbursement increase
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11-15-99 Washington. Hospitals and other healthcare providers may soon get some welcome relief from the financial strains created by the Balanced Budget Act of 1997. House and Senate negotiators are trying to work out the details of an $11 billion package that would increase Medicare reimbursements. The legislation also would lift caps on speech, occupational, and physical therapy services for two years while a study of patient needs is conducted. That move drew applause from therapists, who say elderly and disabled patients have been harmed by the limits Medicare currently imposes. "This crucial step will mean that Medicare patients will be able to take their own steps toward full recovery," said Jan K. Richardson, PhD, PT, president of the American Physical Therapy Association. Congress and the Clinton administration have reached a tentative agreement that would provide $11 billion over five years. The money likely would come from budget surpluses and the Medicare trust fund. Congress is expected to take up the issue again this week. The American Hospital Association had requested that Congress allocate $25 billion for Medicare reimbursements, "so we view this as a down payment," said Dionne Dougall, spokesperson for the AHA, which represents 5,000 hospitals across the nation. "We wish it could be more, given the problems we know have been out there for hospitals," she said. "But we certainly think this is an important first step." Much of the allocated money would go to hospitals, particularly teaching hospitals to help train physicians. Some of the money would go to HMOs and nursing homes. Home healthcare companies would be spared cuts that were scheduled for next year. Increased payments for Pap smears and extended coverage of anti-rejection drugs for organ transplant recipients also are part of the legislative package.
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