Late this week the U.S. Senate failed its second attempt to gain the 60 needed votes to pass the so-called “Jobs Bill.”  The bill contains important health care related provisions that have been scaled back from the original proposal.

Senators Ben Nelson (D-NE) and Joe Lieberman (I-CT) voted with all Senate Republicans to block the $120 billion bill.  The measure failed having only received 56 “aye” votes.

Of key concern for hospitals is the enhanced Medicaid funding in the bill that would extend the increased federal share of Medicaid dollars for states.  Iowa’s state budget currently relies on nearly $150 million that would cease to exist should the Senate not pass this legislation.

In addition the bill contains an temporary patch for physician Medicare payments that are currently in limbo.  A flawed payment mechanism in the Medicare program causes physicians to face huge annual cuts that, until now, had been prevented by Congress.  Physician Medicare claims have been held by the Centers for Medicare & Medicaid Services for the past week and will likely have to be held longer.

IHA supports this legislation and urges the Senate to take final action to ensure appropriate funding for state budgets and fix the physician payment cuts.