October 5, 2001
Health Subcommittee Unanimously Approves Medicare Regulatory Reform Bill
Congratulating the House Ways and Means Subcommittee on Health for producing their "first bipartisan bill since the Social Security Act of 1994," Chair Nancy Johnson (R-Conn.) led an Oct. 4 mark-up of the "Medicare Regulatory and Contracting Reform Act of 2001"(MRCRA) (HR 2768), legislation intended to ease regulatory burdens placed on Medicare providers. Rep. Johnson and Ranking Member Fortney "Pete" Stark (D-Calif.) introduced the bill before the August recess.
The Subcommittee unanimously passed the mark, a substitute in the nature of an amendment to HR 2768. The mark also addresses provider rights during audits, contractor reforms, and the designation of ombudsmen to advocate on behalf of Medicare providers and beneficiaries. The mark also attempts to expedite Medicare approval of new technology, establishes blood borne pathogen standards for certain public hospitals, and clarifies the "prudent layperson rule" within the context of Medicare fee-for-service guidelines.
Representative Stark specifically praised the bill for provisions that require CMS to simplify and clarify the process for changing and issuing new Medicare regulations. However, he reminded the Subcommittee that CMS will require additional funding to carry out these reforms.
The Health Subcommittee has focused on Medicare regulatory reform since March when it held its first hearing on the issue. Rep. Johnson and others are concerned that Medicare's excessive paperwork requirements reduce the time physicians can devote to patient care. They also worry that burdensome regulations will drive physicians out of the Medicare system and reduce seniors' access to care.
MRCRA is one of several bills introduced this session that would streamline Medicare regulations and reduce paperwork requirements for providers. The most recent Medicare regulatory/contractor reform bill comes from the House Committee on Energy and Commerce. Called the "Medicare Regulatory, Appeals, Contracting, and Education Reform Act of 2001," (the Medicare RACER Act), the bill is sponsored by Representatives Patrick Toomey (R-Penn.) and Shelley Berkley (D-Nev.) as well as full Commerce Committee Chairman Billy Tauzin (R-La.), full Commerce Committee Ranking Member John Dingell (D-Mich.), Subcommittee on Health Chairman Michael Bilirakis (R-Fla.) and Subcommittee on Health Ranking Member Sherrod Brown (D-Ohio.) RACER and MRCRA are similarly drafted.
In an Oct. 3 letter to the Ways and Means Health Subcommittee, the AAMC, along with the American Hospital Association, National Association of Public Hospitals and Health Systems, Premier and VHA, Inc., urged passage of H.R. 2768.
Information: Chris Mitchell or Lynne L. Davis, AAMC Office of Governmental Relations, 202-828-0526.
