According to Mr. Pollack, the debt limit extension will be a key focus for legislators over the next few months as they work to agree to the terms of an extension before Aug .1, when the U.S. is set to hit its debt ceiling.
As Democrats work to increase the debt ceiling, Republicans will use it as leverage for spending cuts. This should be of interest to healthcare providers because Medicare and Medicaid represent a “huge chunk” of federal spending, says Mr. Pollack.
At this time, it’s unsure what the final legislation will look like. Several alternatives exist, including shorter-term ceiling extensions and longer-term budget legislation. If a short-term approach is used, Democrats will likely have to acquiesce on spending cuts in order to gain Republican approval for an extension.
Longer-term approaches have also been introduced by Republicans and Democrats in the shape of budget proposals. Both parties’ legislation include spending caps and mandatory across-the-board cuts (sequesters) if Congress does not meet the spending targets. Republican legislation prohibits tax increases, while legislation introduced by the White House does not protect against increasing revenue. In regards to Medicare and Medicaid, Republicans are open to benefit cuts. President Obama’s plan would protect benefits but would make provider payments immune to a sequestration.
Mr. Pollack said the AHA opposes “arbitrary targets and triggers,” adding that hospitals have already agreed to $155 billion in cuts as part of the Affordable Care Act and legislators should look to beyond traditional provider cuts for budget savings. Instead, the AHA proposed a number of cost-saving provisions, such as liability reform, several of which appear in various budget proposals.
Scott Becker, JD, CPA, publisher of Becker’s Hospital Review, spoke highly of the presentation. “Rick Pollack is a magnificent speaker and his thoughts on healthcare policy are very clear, highly intelligent and informative.”
