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Since it's stuck in the water, the DMCB's economic status will be forced to await the details surrounding the latest Federal budget agreement of undefined cuts that amount to $917 billion. Then there's the $1.2 trillion in additional cuts that will be decided upon by a 12 person Congressional "Super Committee." As the DMCB understands it, that initial $917 billion did not include Medicare or Medicaid, thanks to a reprieve wrestled from the White House at the last minute by House Minority Leader, Nancy Pelosi (D-CA). Whether the Super Committee protects Medicare and Medicaid in the second round of cuts remains to be seen. If they fail to come to an agreement, automatic cuts will kick in, which will include an across-the-board 2% reduction for Medicare. Ouch.
After reading Bob Laszewski's Health Care Policy and Marketplace Review, the DMCB isn't optimistic on how how these health care entitlement programs will fare. It's unlikely that eligibility will be tackled in four short months and less than a year before an election. That leaves payment cuts. Cuts to States, cuts in payment rates to hospitals, and, most ominously, reneging on the likely backroom political promises that were made to organized physician organizations over fixing a looming 29.5% sustainable growth rate (SGR) pay-cut debacle.
The bulk of the Republicans have made it clear that they won't go along with any "new revenue" ideas, while the White House was surprisingly prepared to offer a 4% cut for Medicare payment rates. None of this bodes well for providers.
The DMCB will be watching carefully to see how they respond.
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