June 2009  

Health Policy at a Glance

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Congress Moves Forward on Health Reform

Finance Committee Eyes Not-for-Profit Status

Action on health reform is at the top of the congressional agenda as members of the House and Senate return from their Memorial Day recess. Both the Senate Finance and Health, Education, Labor and Pensions Committees are drafting proposals, which are expected to be incorporated into a bill in the coming weeks. The Senate Finance Committee released in May three separate option papers outlining possible approaches to the issues of payment reform, coverage and financing. While the financing document provides little detail and does not contain savings numbers, committee leaders have indicated that about half of the package would be financed through provider reductions and recommendations by the Medicare Payment Advisory Commission.

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Administration Releases Detailed HHS Budget

The Obama Administration released on May 7 the FY 2010 Department of Health and Human Services (HHS) budget, which provides additional details of the president’s budget outline released in February. The release of the budget, which would achieve significant savings in healthcare, preceded a May 11 pledge to the president by major healthcare industry stakeholders that they would squeeze $2 trillion in savings from the healthcare system over the next decade.

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CMS Releases FY 2010 Hospital IPPS Rule

The Centers for Medicare & Medicaid Services (CMS) on May 1 released its FY 2010 Medicare inpatient prospective payment system (IPPS) proposed rule. Comments are due by June 30.

For FY 2010, CMS applies the full market-basket update of 2.1 percent to hospital payments However, hospitals will experience an average decrease of .5 percent after outlier and wage index adjustments, as well as an initial -1.9 percent behavioral offset that is expected to be expanded over the next three years, ultimately decreasing payments by 6.6 percent. The behavioral offset is, according to CMS, necessary to account for improved documentation and coding that it projects will occur through implementation of the new Medicare-severity diagnosis-related groups coding system.

Summa Leadership Discusses Healthcare Reform Options with Ohio Delegation

In May, Summa leadership met with Ohio delegation members Brown, Sutton and LaTourette to express their appreciation of the Members’ commitment to tackle healthcare reform and advance the healthcare needs of Ohioans. Summa provided the Members with a system perspective of healthcare issues and opportunities. Summa shared its concerns relative to physician workforce and insurance reform.

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House Speaker Budish Visits Summa Health System

Ohio House Speaker Armond Budish visited with Summa Health System leadership on May 18 to exchange information and ideas about health policy and public sector funding matters. Speaker Budish provided health system board and executive leadership with an update of the state budget and its implications for all Ohio residents and industries. He shared that the legislature will make tough decisions to ensure education, healthcare and economic development strategies are advanced within a limited resource environment. The Speaker invited leadership to remain in touch with him and other elected officials regarding any revenue enhancement and cost reduction strategies the state could consider to balance the budget.

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