Each year we hear the dollar figure, and each year it grows. In 2004, our nation spent $1.8 trillion on health care, yes trillion. For that kind of money, you would think that the United States would be in the best shape healthwise in the world. But we’re not even close. According to the World Health Organization, the United States' health care system ranks 37th when it comes to successful outcomes. We have dedicated health care professionals who strive every day to serve their patients. So it's logical that before we spend even more on health care delivery, the system should be improved so that it better rewards successful delivery and quality care.
In the U.S. Senate, I'm chairman of the Finance Committee, which has legislative and oversight authority over Medicare. For almost 40 years this program has provided health care security to millions of seniors and individuals with disabilities. We need to preserve and sustain Medicare for generations to come. As part of that effort, I've worked to bring greater accountability to Medicare so taxpayers get a better bang for their buck and beneficiaries receive the quality health care they deserve. Most recently, in June, I introduced the Medicare Value Purchasing Act of 2005.
This bill makes a significant but simple change in Medicare’s payment system. It would tie a portion of providers’ Medicare payments to the quality of care they deliver. This change would apply to acute-care hospitals, physicians and practitioners, Medicare Advantage plans, end-stage renal disease providers, home health agencies and eventually skilled nursing facilities.
These providers and plans would have to report data on quality measures and this information would be made available to the public to help people make better informed health care decisions. Based on the reported data, providers that meet certain quality performance thresholds or demonstrate improvement in care would receive additional payments. Those who don’t will receive lower payments.
The legislation also focuses on data coordination and health information technology. And it takes into account unique characteristics of rural providers and small hospitals.
My bill would serve as a long overdue catalyst to encourage the delivery of patient-focused, cost-effective, quality health care to the 40 million Americans served by Medicare. It also would help remedy a situation that has plagued providers and beneficiaries in states like ours that consistently rank high in terms of quality of care, but receive lower Medicare payments.
As the largest purchaser of health care, Medicare can and should lead by example in the quality arena, a sentiment shared by the prestigious Institute of Medicine. The Medicare Value Purchasing Act of 2005 would help Medicare fulfill that role. Medicare beneficiaries, along with other health-care consumers, deserve the best value possible from our health care delivery system.