New Budget, Old Debates

Washington

Much to home care providers’ relief, the U.S. House and Senate last month passed a 2004 budget resolution that did not include cuts to Medicare or Medicaid.

“The budget does not include a proposed $90 billion in Medicaid reductions,” said Seth Johnson, director of public policy for the Alexandria, Va.-based American Association for Homecare. “This is definitely good, compared to where we were a week and a half ago.”

However, Johnson cautioned providers not to take too much comfort in the budget resolution. Even as they return home for a spring recess, lawmakers are writing legislation that could change the Medicare and Medicaid landscapes drastically, he said.

Elsewhere on Capitol Hill, cuts to Medicare and Medicaid were on the tips of many lawmakers’ tongues, as no fewer than four influential congressional committees held hearings about the status of federal health care programs. Representatives from the Congressional Budget Office and the U.S. General Accounting Office told Congress’ Joint Economic Committee that Medicare and Medicaid are in dire straits, and that any solution should include cuts and reforms.

Meanwhile, a task force of nine governors met in Washington to develop a common approach to Medicaid reform. An offshoot of the National Governors Association, the task force placed the issues of federal responsibility and “dual eligibles” at the top of the reform agenda.

Also last week, the CBO testified before the House Ways and Means Committee about approaches to controlling health care spending — again emphasizing that spending reductions must accompany increased benefits. “Looking at the Medicare program as a whole, the choices may be even more stark,” said Douglas Holtz-Eakin, director of the CBO. “If the program continues to operate as it is currently structured, its costs will rise significantly — even in the absence of program expansions such as a drug benefit.”

AAHomecare’s Johnson explained this flurry of health-care-reform hearings as a taste of what is to come. “[Lawmakers] were laying a lot of groundwork for how the Medicare debate will move along this year.”

For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.