Hospital Groups Urge Bush to Reject Reductions in Medicare and Medicaid in Upcoming Budget
January 18, 2002 - A Jan. 16 letter signed by the AAMC
and six other hospital groups urged President Bush to restore Medicare
and Medicaid payment reductions scheduled to occur in FY 2003 as well
as reject any additional Medicare and Medicaid provider reductions.
The letter argues that "funding shortfalls threaten to jeopardize
the health care services that America's seniors need and deserve, and
further cuts would exacerbate an already tenuous situation." Specifically,
the letter notes that reductions in Medicare Indirect Medical Education
and Medicaid Disproportionate Share Hospital payments are scheduled
to occur in FY 2003 and that improvements need to be made in the rural
area wage index, standardized rate, and the market basket update for
inpatient services.
States the letter, "Indeed, we strongly believe we must not only
protect the system from further cuts, but also shore up those parts
of Medicare that have been historically weak."
Citing the many issues hospitals face such as the health care worker
shortages, increasing drug and technology costs, regulatory burdens,
and disaster readiness issues, the letter indicates that reductions
in Medicare and Medicaid would be devastating.
"We urge you to reject any reductions in the Medicare and Medicaid
programs, and restore funding to vital programs that are scheduled to
experience further cuts in 2003, while preparing your budget blueprint
for next year."
The letter was also signed by the American Hospital Association, Catholic
Health Association of the United States, the National Association of
Children's Hospitals, and National Association of Public Hospitals and
Health Systems, Premier and VHA Inc.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526
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