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Senate Budget Chair Calls for More Cuts in Medicare

Republicans to recycle old failed issues in 2006

Jan. 26, 2006 – The Republican chairman of the Senate Budget Committee is calling for more cuts in health care programs in fiscal 2007, which includes Medicare, according to The Daily Health Policy Report by KaiserNetwork.org, which cites CQ Today. The daily news summary says Republicans will also be targeting health care proposals this year, but most are proposals that have failed in the past.

Capitol Hill Watch

Sen. Gregg Calls for More Medicare, Medicaid Spending Reductions This Year
[Jan 26, 2006]

Click here to the Daily Health Policy Report - KaiserNetwork.orgSenate Budget Committee Chair Judd Gregg (R-N.H.) on Wednesday called for spending reductions in the fiscal year 2007 budget, "particularly in health care programs" such as Medicare, CQ Today reports. The FY 2007 budget process will begin on Feb. 6, when President Bush delivers his proposed budget to Congress.

 

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Homecare Industry Rallying Support to Kill Reconciliation Act

Senate bill going back to House for final vote freezes pay rate at 2005 level

Jan. 22, 2006 – Among the most active in fighting to kill the Budget Reconciliation Act is the American Association for Homecare, the industry group for home health care providers and those who use this service. Despite home health care being a popular option with senior citizens and studies showing it can be the least costly way to care for the elderly, the bill has several provisions that negatively impact the service. The most critical is a freeze on their pay rate for services from the Centers for Medicare and Medicaid Services. Read more...

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Gregg said, "I'm not here to be a potted plant. ... If we're going to do a budget, it's going to be a serious budget." Gregg said that he expects the budget proposal from Bush to include spending reductions, adding, "We can't afford our government as it is currently structured."

Gregg also rejected the opinion that Republicans should avoid spending reductions in an election year, adding, "As Republicans, we should look at it as a strength, not a weakness."

However, "Gregg's fervor for budget cuts ... is not shared by all of his GOP colleagues," according to CQ Today. Sen. Norm Coleman (R-Minn.) said, "I think it was tough enough getting enough votes" for an FY 2006 spending reduction bill (S 1932) passed late last year by the Senate.

Meanwhile, House Republican leaders on Wednesday "had a setback" in efforts to pass the legislation in the House, CQ Today reports. Rep. Rob Simmons (R-Conn.) said that he would no longer support the bill, on which the House plans to vote on Feb.1, because of opposition from AARP, labor unions and radiologists.

However, several additional Republican House members would have to drop support before the legislation would fail to pass (Dennis, CQ Today, 1/25).

Republican Lawmakers Likely To Promote 'Recycled' Health Care Proposals
[Jan 26, 2006]

Republican lawmakers this year likely will promote a number of health care proposals as the midterm elections approach, but "most of their initiatives are likely to be recycled measures that Congress has rejected in the past," CQ Today reports.

According to CQ Today, Republican lawmakers first must address problems with the launch of the Medicare prescription drug benefit, which began on Jan. 1. Sen. Olympia Snowe (R-Maine) has proposed a bill (S 2168) that would extend the time in which Medicare beneficiaries can enroll in the prescription drug benefit without penalty to help address the problems.

Republican lawmakers also likely will promote legislation that would expand tax incentives for health savings accounts to help reduce health care costs. However, passage of such legislation "could prove difficult" because the cost of new tax incentives "could make lawmakers skittish" at a time when they face "pressure ... to rein in the deficit," according to CQ Today.

In addition, Republican lawmakers likely will promote legislation that would encourage the increased use of electronic health records. The Senate last year passed a bill (S 1418) sponsored by Senate Majority Leader Bill Frist (R-Tenn.) and Sen. Hillary Rodham Clinton (D-N.Y.) that would encourage the standardization and increased use of EHRs, and Republican House members this year likely will make a similar legislation (HR 4157) a priority.

Meanwhile, Snowe likely will promote a bill (S 406) that would allow small businesses to form association health plans across state lines and would exempt the plans from a number of state laws that regulate health plans and require them to cover certain benefits. According to CQ Today, similar legislation has passed in the House several times, but the Senate has "been reluctant to override state requirements." In response, Sen. Michael Enzi (R-Wyo.) has proposed a bill (S 1955) that would require AHPs to adhere to coverage mandates established in at least 45 states (Schuler, CQ Today, 1/25).

"Reprinted with permission from kaisernetwork.org (insert hyperlink to http://www.kaisernetwork.org). You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

 

 

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