Providers-Could-Save-$353-Billion

Proposal Will Save Medicare & Medicaid $353 Billion & Help Deficit

Includes Cuts to Home Health & Hospice Providers.

A list of Medicare and Medicaid changes was outlined this week by House Majority Leader Eric Cantor (R-VA), including cuts to home care and hospice providers, which could save $353 billion over the next 10 years. Cantor’s proposals are the result of ongoing deficit reduction negotiations led by Vice President Joe Biden.

One of Cantor’s proposals, which healthcare provider groups and advocates  strongly oppose, is roughly in tune with White House proposals to merge certain Medicaid matching percentages into a single rate. He states that this provision would save about $100 billion, according to published reports. However, opposition to blended payments from State governors vocalize that this would shift costs to the states.

Other Cantor proposals take funding from the states, doctors and other healthcare providers. One proposal would cut payments for radiology tests such as CT scans and MRIs, while another would increase Medicare beneficiary co-payments for laboratory testing. Cantor says his plan would save an estimated $26 billion by getting rid of payments on Medicare’s bad debt.

HEALTHCAREfirst, the industry’s most comprehensive and advanced suite of Web-based management software, billing and coding services and consultation exclusively to home health care and hospice care agencies, will continue to keep a watchful eye and report on these heated congressional proposals as they are presented.

July 15, 2011

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