Press Releases
WASHINGTON, DC – U.S. Senator Pat Roberts (R-KS) today announced the Senate unanimously approved a package last night that reduces the impact of cuts to hospitals from a final rule issued by the Centers for Medicare and Medicaid Services (CMS).
“These cuts would have been devastating to our Kansas hospitals, particularly in rural areas,” Senator Roberts said. “I am pleased the Senate acted quickly to lessen the impacts of the payment cuts to our hospitals that serve critical services. Also, this short-sighted and misguided rule would have stifled hospital investments in technology and other services that increase patient quality and reduce health care costs.”
At issue is the annual Hospital Inpatient Prospective Payment System (IPPS) rule by CMS which would have severely cut hospital payments through a “behavioral” offset. This rule would cut Medicare payments to hospitals by $20.3 billion over the next five years and in Kansas by $11 million next year and $176 million over the next five years. Instead of across the board cuts, this legislation will roll back the cuts by half in both 2008 and 2009. The cuts to all inpatient hospital services for Medicare patients were based on the assumption by CMS that hospitals would change their coding practices for procedures and services, resulting in higher payments.
In June, Senators Pat Roberts and Ken Salazar (D-CO) along with sixty-two Senators sent a letter to Acting Administrator Leslie Norwalk at the Centers for Medicare and Medicaid Services (CMS) opposing this proposed behavioral offset. “These draconian cuts in reimbursements, which are based on conjecture, will impose an added burden on all hospitals. As a result, many hospitals in rural and urban areas, which operate on thin margins, may be forced to reduce their services, leaving patients without a sufficient level of access to hospital services,” the Senators wrote.
“I am disappointed CMS did not listen to 64 Senators who urged the agency to consider the affects of this new misguided rule set to take effect October 1,” Senator Roberts said. “I am grateful the leadership in the Senate brought up this legislation to alleviate these unfair cuts, and I will continue to work with my colleagues to further lessen the impact of these unnecessary cuts.”
In addition, this month, Senators Roberts and Salazar wrote a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) urging them to take up legislation to reduce the impact of these harmful cuts to hospitals before October 1 when the rule was set to take effect.
The House also passed this package this week and it now goes to the President for his signature.
Senator Roberts is a member of the Senate Finance Committee and a senior member of the Senate Health, Education, Labor and Pensions (HELP) Committee.
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“These cuts would have been devastating to our Kansas hospitals, particularly in rural areas,” Senator Roberts said. “I am pleased the Senate acted quickly to lessen the impacts of the payment cuts to our hospitals that serve critical services. Also, this short-sighted and misguided rule would have stifled hospital investments in technology and other services that increase patient quality and reduce health care costs.”
At issue is the annual Hospital Inpatient Prospective Payment System (IPPS) rule by CMS which would have severely cut hospital payments through a “behavioral” offset. This rule would cut Medicare payments to hospitals by $20.3 billion over the next five years and in Kansas by $11 million next year and $176 million over the next five years. Instead of across the board cuts, this legislation will roll back the cuts by half in both 2008 and 2009. The cuts to all inpatient hospital services for Medicare patients were based on the assumption by CMS that hospitals would change their coding practices for procedures and services, resulting in higher payments.
In June, Senators Pat Roberts and Ken Salazar (D-CO) along with sixty-two Senators sent a letter to Acting Administrator Leslie Norwalk at the Centers for Medicare and Medicaid Services (CMS) opposing this proposed behavioral offset. “These draconian cuts in reimbursements, which are based on conjecture, will impose an added burden on all hospitals. As a result, many hospitals in rural and urban areas, which operate on thin margins, may be forced to reduce their services, leaving patients without a sufficient level of access to hospital services,” the Senators wrote.
“I am disappointed CMS did not listen to 64 Senators who urged the agency to consider the affects of this new misguided rule set to take effect October 1,” Senator Roberts said. “I am grateful the leadership in the Senate brought up this legislation to alleviate these unfair cuts, and I will continue to work with my colleagues to further lessen the impact of these unnecessary cuts.”
In addition, this month, Senators Roberts and Salazar wrote a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) urging them to take up legislation to reduce the impact of these harmful cuts to hospitals before October 1 when the rule was set to take effect.
The House also passed this package this week and it now goes to the President for his signature.
Senator Roberts is a member of the Senate Finance Committee and a senior member of the Senate Health, Education, Labor and Pensions (HELP) Committee.
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