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Major Cuts in Provider Pay Recommended by White House Commission

Cheryl Clark, for HealthLeaders Media, November 11, 2010

He added that the draft's proposal to accelerate DSH payment cuts "is not acceptable" because "the vital program was already cut in the health reform legislation" and because it provides funds to hospitals that serve a large portion of the poor and uninsured.

The idea that the IPAB would be able to cut hospital Medicare fees before 2020 "flies in the face of congressional intent and removes lawmakers from decisions that will affect healthcare in the community," he said.

And proposed cuts in funding for graduate and indirect medical education " at a time when physicians are in short supply." And it cuts the Medicare bad debt program that provides funds to hospitals that treat seniors who can't pay their bills, Umbdenstock said.

Among the reports other recommendations to cut healthcare spending are these:

  • Require rebates for brand name drugs as a condition of participating in Medicare Part D.
  • Enact comprehensive medical malpractice liability reform to cap non-economic and punitive damages and make other changes in tort law.
  • Expand cost-sharing in Medicare to promote informed consumer health choices and spending.
  • Expand Accountable care organizations, bundled payments and other payment reforms.
  • Cut federal spending on graduate and indirect medical education.
  • Reduce Federal Spending on Medicaid Administrative Costs.

Cheryl Clark is senior quality editor and California correspondent for HealthLeaders Media. She is a member of the Association of Health Care Journalists.
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