Frist Comments on Prospect
of Medicare Reform
May 2, 2003 - In remarks given April 28 at the American
Hospital Association's annual meeting, Senate Majority Leader
Bill Frist (R-Tenn.) said that the Medicare reform plan likely
to be taken up in the Senate Finance Committee this June will
be an "assimilation" of previous proposals, including
President Bush's reform framework, the tripartisan plan, the
Breaux-Frist approach, and previous House plans.
Sen. Frist reported that Senate Finance Committee Republicans
have been meeting and working on the reform proposal. Sen.
Frist's challenge will be to oversee the development of a
proposal that can pass the Senate Finance Committee and secure
support from enough Democrats to ensure the 60 votes required
to avoid filibuster. Critical to the proposal's support is
whether the same prescription drug benefit will be offered
in Medicare fee-for-service and the private-based plans that
will be added to Medicare. Senate Democrats and Senate Finance
Committee Chairman Chuck Grassley (R-Iowa) have reportedly
expressed support for "equalization."
Sen. Frist offered the following characteristics of the proposal
he envisions:
- Flexibility to allow plans to respond to innovations;
- Rewards for ongoing quality improvement;
- Competition based on a level-playing field;
- A prescription drug card;
- A preferred provider option known as Medicare advantage;
- A regionally based system; and
- Subsidies for low-income beneficiaries.
Sen. Frist said he anticipated that the next four weeks would
entail refining the plan with Democrats before marking up
legislation in the Senate Finance Committee in June and bringing
the bill to the Senate floor before the July 4 recess. He
prognosticated that the House might act on a similar schedule.
The majority leader did not mention provider payment relief
as a component of the reform proposal.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526

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