by Shannon Strickler on Tuesday, June 16, 2009
4During his weekly address to the nation on Saturday, President Obama announced that he will seek more than $300 billion in additional cuts from Medicare and Medicaid payments to help finance health care reform.
Two-thirds of the new proposed spending cuts come from hospital payments. The President proposed $106 billion in ‘savings’ by cutting the Medicare and Medicaid DSH programs by 75 percent. In addition, the President proposed $110 billion in ‘savings’ by reducing inflationary updates with an annual ‘productivity adjustment,’ the greatest impact on hospitals.
These ‘savings’ are in addition to the President’s FY2010 budget proposal to cut Medicare and Medicaid spending by $309 billion. They are also in addition to the $38 billion in previously announced reform-related cuts, and $41 billion in cuts in the proposed FY 2010 inpatient PPS rule.
IHA will be analyzing the proposal’s specifics and determining as best possible the Iowa impact. IHA will also be coordinating our messages and advocacy strategy with AHA. Please stay tuned for next action steps on this important issue.
how can we cut the medicade and medicare payment to the hospitals? Iowa is the very lowest paid the way it is. I see care being less due to the cuts.
Diane,
We share your feelings about how this will affect our hospitals and patients, especially given our state’s status within the system.
IHA’s data shows Iowa hospitals lost a combined $270 million in Medicare and Medicaid reimbursements in 2007, a number grows every year. And still, Iowa sits second in the nation in quality and cost.
Thanks for stopping by to share your thoughts. We appreciate your willingness to contribute.
I heard about IHA from our president of Mary Greeley Medical Center in Ames, Iowa. He encourages us to read about what is going on and to respond if we feel we need to.