MEDICARE CLIFF UPDATE

VHCA

The House of Representatives has passed a Continuing Resolution, funding the basic operations of the government at FY 2002 levels through January 11, 2003, and delaying action on a Medicare provider package until Members reconvene for the 108th session on January 7, 2003.  The Senate is expected to pass its version sometime this week, when the 107th Congress will officially adjourn for the year.

Therefore, the next opportunity for the congressional leadership to address the Medicare cliff will be sometime in January.  In the meantime, it is critically important for us to continue to communicate the urgency of addressing the Medicare cliff and the threat these cuts pose to quality care and jobs. 

AHCA has learned that a member of the Senate has called nursing facilities in his home state to assess the impact of the cliff and the urgency of addressing the problem.  With the change of committee leadership, priorities and agendas, the number of such calls is expected to increase as legislators look for excuses to avoid action on the Medicare cliff, or look for evidence to support it.  Sometimes a very small sample can have a very big impact.

It is very important that we continue to remind legislators of the negative impact these $35 per patient, per day cuts (or $1.8 billion annually) are having or will have on staffing, therapies, and other critical services provided NF residents.  In a New York Times article about the Administration's Quality Initiative, Health and Human Services Secretary Tommy Thompson provided the effort to fix the cliff with an important boost by saying nursing facilities need more funding for patient care.

"Asked whether nursing homes should receive higher federal payments, Secretary Thompson said: 'Sure, they need more money.  Everybody in the nursing home industry realizes that.  I support them.'" (New York Times, 11/13/02)

AHCA is aggressively moving Thompson's message to key congressional lawmakers and staff.

In the upcoming weeks, AHCA plans to maintain the noise level generated by grassroots activities, earned media placements, and events.  Methods to communicate with Congress remain 1.866.STOP.CUTS and, for email, the AHCA Web Site, www.ahca.org.