AHA Proposes Alternatives to Medicare, Medicaid Cuts

Saying it opposes further cuts in Medicare and Medicaid payments, the AHA proposed alternative measures to cut federal healthcare spending and add revenue, according to an AHA Action Alert to hospitals.

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The context of the AHA Alert is the need for Congress to agree on more federal spending cuts before lawmakers raise the federal debt limit, which must take place by Aug. 2.

 

The AHA’s proposed alternatives to Medicare cuts include medical liability reform, junk food taxes, more cost-sharing by Medicare beneficiaries, a tax cap on employer-provided health insurance benefits and adjusting the Medicare eligibility age.

 

The organization’s Medicaid alternatives include using Medicaid versions of accountable care organizations, bundling, medical homes and pay for performance; coordinating care for dual eligibles and people with chronic conditions; increasing use of generic drugs; restructuring copayments; and designing tax incentives for long-term care.

 

“We strongly oppose efforts to further cut payments for hospital services under Medicare and Medicaid,” the alert says. “The field is already absorbing $155 billion in reductions as part of the [healthcare reform law], as well as state Medicaid cuts. And that does not include additional cuts imposed by regulation, such as coding offsets under the Medicare inpatient prospective payment system.”

 

Read the AHA Action Alert on healthcare spending.

 

Related Articles on Cutting Federal Spending:

President, GOP Agree Medicare Spending Must be Tamed, But How?

With Medicare Off the Table, Medicaid is Chief Target for Cuts

HHS Head: Payment Board Preferable to GOP Medicare Revamp

 

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