CQ's Carey discusses Medicare legislation, Medicaid regulations, bipartisan health care summit

Mary Agnes Carey, associate editor of CQ HealthBeat, discusses Senate Democrats' plans to craft legislation that would stop a scheduled reduction in Medicare physician payments; a provision in a supplemental war spending bill that would block for one year new Medicaid regulations; and a bicameral, bipartisan health policy summit set for June in this week's "Health on the Hill from kaisernetwork.org and CQ."

According to Carey, Senate Finance Committee Chair Max Baucus (D-Mont.) has decided not to work with panel ranking member Chuck Grassley (R-Iowa) in crafting Medicare legislation because the committee's Republican members are unlikely to support it. Carey says Democrats feel strongly about using cuts in payments to Medicare Advantage plans as a way to fund legislation that will stop a scheduled 10.6% cut in Medicare physician payment rates. However, most Republicans and the White House oppose any major cuts to MA plans, so the Democrats' bill likely will be blocked. Carey adds that Baucus plans to draft the bill over the Memorial Day recess and move it directly to the Senate floor in early June. The measure also may include incentives to encourage electronic prescribing in Medicare, improve preventive care and provide higher payments for rural health care providers.

Before adjourning for the Memorial Day recess, the Senate passed a supplemental war spending bill that would place a one-year moratorium on seven Medicaid regulations issued by HHS. The regulations would reduce federal spending on the program by about $20 billion, Carey says. The Senate also has passed stand-alone legislation that would block the regulations. In addition, a federal judge has blocked a regulation that would reduce Medicaid payments to safety net hospitals, saying that the Bush administration tried to circumvent Congress' intent. CMS said it is confident that the rule will be upheld.

Lastly, Carey discusses Senate Finance Committee plans for a bicameral, bipartisan health policy summit to take place June 16 as part of the committee's yearlong series of hearings, forums and other events to prepare for what many hope will be congressional action next year on health care reform. The forums will examine rising health care costs, state-based reform efforts and trends in employer-sponsored health coverage, demographics, public programs and delivery-of-care issues.

The complete audio version of "Health on the Hill," transcript and resources for further research are available online at kaisernetwork.org.