Last week, as the United States Senate worked to wrap up budget legislation for the current fiscal year, senators considered various proposals to relieve Medicare providers from Medicare reimbursement rate cuts that either went into effect on October 1, 2002, or are scheduled to go into effect later this year. Specifically, the Senate was debating House Joint Resolution 2 (HJR-2), the Omnibus Appropriations Resolution, which contains funding for many Federal departments, including the Department of Health and Human Services. HJR-2, as brought to the Senate floor, contained two Medicare provisions. One would eliminate, through September 30, 2003, the Medicare reimbursement rate cut for physician services that is scheduled to take effect on March 1, 2003. The other would eliminate the disparity in the Medicare inpatient standardized amount, bringing rural and small urban hospitals up to the large urban area hospital rate. The uniform standardized amount would be in effect from April 1, 2003, through September 30, 2003, only. Senator Hillary Rodham Clinton (D-NY) offered an amendment to provide relief for other providers as well. Specifically, the Clinton amendment would have eliminated other provider cuts that went into effect on October 1, 2002, from April 1, 2003, through September 30, 2003. These include the Medicare indirect medical education cut for teaching hospitals, the inpatient market basket update reduction of -0.55%, a variety of outpatient reductions, the elimination of the skilled nursing facility rate add-ons for nursing and other purposes, the 15% rate cut for home health care providers, and others. The Clinton amendment, although strongly supported by GNYHA, was defeated, like most amendments, largely along party lines. Nevertheless, GNYHA is grateful to Senator Clinton and her colleague, Senator Charles Schumer (D-NY) for their steadfast support for the New York health care community. HJR-2 passed the Senate on January 23, 2003.

In other news, GNYHA has been working to build support in the House of Representatives for action on provider relief legislation. Specifically, GNYHA has been urging New York members of Congress to sign on to a letter, authored by Congressmen Dave Camp (R-MI) and Ben Cardin (D-MD), calling upon House leaders to pass legislation to relieve providers of Medicare cuts as soon as possible. At this writing, 23 of the 29 New York members of Congress had signed on to the Camp-Cardin letter. In addition, GNYHA is grateful to New York Republican members, led by Congressmen John Sweeney and James Walsh, for a separate letter they have sent to House Republican leaders calling for action without delay.