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NASH Seeks Help From End-of-Year Legislation

Eliminate Medicaid disproportionate share hospital cuts (Medicaid DSH), appropriate additional resources for the Provider Relief Fund, and extend the current suspension of the two percent sequestration of Medicare spending, the National Alliance of Safety-Net Hospitals asked members of Congress in a letter NASH sent yesterday.

The request comes as Congress returns to Washington to take up the funding of the federal government at a time when authorization for spending under a continuing resolution ends on December 11.  In addition to addressing federal funding, Congress also may consider COVID-19 legislation.

Learn more from NASH’s letter to Congress.

Hospital Government Payment Losses Could Reach $218 Billion by 2028

A recent study concluded that hospitals can expect to lose about $218 billion in federal Medicare and Medicaid payments between 2010, when the latest round of major cuts began, and 2028.

Among those cuts cited in the study, which was commissioned by the American Hospital Association and the Federation of American Hospitals, are:

  • $79 billion for DRG documentation and coding adjustments
  • $73 billion for Medicare sequestration
  • $26 billion for Medicaid disproportionate share payments (Medicaid DSH)
  • $11 billion in cuts associated with the American Taxpayer Relief Act of 2012

Other cuts came, or will be coming, through regulatory changes, the introduction of value-based payment programs, and other means.

Learn more about these cuts and their potential implications in this Healthcare Dive story.

 

Medicare Cuts May be Part of Budget Deal

The agreement between the White House and congressional negotiators on a two-year budget deal and an increase in the federal debt ceiling will be paid for in part with reductions in Medicare payments.

US Capitol DomeUnder the reported agreement, negotiators agreed to increase federal spending $80 billion over two years, and that increase will almost certainly need to be offset by spending cuts. The New York Times has reported that “The Medicare savings would come from cuts in payments to doctors and other health care providers.”

The budget agreement reportedly did not include specific spending cuts beyond extension of the current two percent Medicare sequestration cuts, although the publication The Hill reports that site-neutral Medicare outpatient payments may be part of the agreement; the additional cuts will need to be negotiated within Congress.

The National Association of Urban Hospitals has long opposed the introduction of site-neutral Medicare outpatient payments and wrote this week to members of Congress urging them not to reduce Medicare payments to hospitals to offset budget agreement spending increases.

To learn more about the budget agreement and its possible implications for health care providers, see this New York Times article and this report from The Hill.

NAUH Asks Congress to Reject Sequestration Increase

The National Association of Urban Hospitals has contacted every member of Congress to ask that they reject a proposal to increase future Medicare sequestration cuts to pay for a trade bill.

NAUH LogoCurrently there is interest in Congress in adding 0.25 percentage points to the FY 2024 Medicare sequestration to help pay for the trade bill. In its message, NAUH noted that private safety-net hospitals already have experienced significant Medicare cuts in recent years and that those cuts will be continuing well into the next decade.

See NAUH’s message to Congress here.