The non-binding measure promotes geographic equity in Medicare fee-for-service payments. It says Medicare should reward, rather than punish, providers which deliver high-quality, cost-effective Medicare services in all areas of the country.
Grassley offered the Sense of the Senate resolution with Sen. Russ Feingold, of Wisconsin. Grassley is a senior member of the Budget Committee and the senior Republican on the Finance Committee, which is responsible for Medicare legislation.
"Last year my drive for Medicare equity was stalled by the September 11 attacks and the need to respond to them. This year the budget will obviously be tight, but making Medicare more fair for Iowans is too urgent to put off any longer," Grassley said. "Any Medicare legislation must include a healthy improvement in funding for Iowa and rural areas in general."
Grassley is leading an effort to develop a comprehensive Medicare bill that would improve the program for beneficiaries with a prescription drug benefit and other changes that reflect the practice of modern medicine. He said his proposal also will include changes to the unfair Medicare payment rules that shortchange cost-effective and small, rural providers. Some current payment rates are based on local historical costs and others are biased in favor of large providers.
Grassley has worked for many years to ferret out flaws in the payment formulas and has made progress in recent years. Congress last acted on Medicare legislation in December 2000. That bill contained many Grassley-sponsored improvements for rural and low-cost health providers, and those changes started taking effect last year.
Passage of today's resolution by voice vote sends a signal of additional support for Finance Committee action on legislation that brings geographic equity to Medicare payments. The Budget Committee is expected to finish work today on its spending blueprint for the federal government's next fiscal year.
A copy of the resolution offered by Grassley and Feingold follows here.
AMENDMENT NO. _____Calendar No. _____
Purpose: To provide for Medicare equity
IN THE SENATE OF THE UNITED STATES?107th Cong., 2d Sess.
Setting forth the congressional budget for the United States Government for fiscal year 2003 and setting forth the appropriate budgetary levels for each of fiscal years 2004 through 2012.
Referred to the Committee on _____________________________
and ordered to be printed
Ordered to lie on the table and to be printed
Amendment intended to be proposed by Mr. Feingold (for himself, and Mr. Grassley)
Viz:
Sec.___. SENSE OF THE SENATE REGARDING MEDICARE EQUITY
(A) FINDINGS - The Senate finds that ?
1) Medicare payment systems should accurately compensate providers who deliver high-quality, cost-effective services to Medicare beneficiaries in all areas of the country.
2)Geographic adjustments in the current Medicare payment systems contain inaccuracies which, in many cases, harm low-cost and rural providers.
3)Medicare today could also be improved by adding new payment adjustments to reflect the true costs of low-cost and rural providers.
4)Accurate and adequate payment adjustments for low-cost and rural providers would increase access of beneficiaries in such areas to needed Medicare services.
5)Research demonstrates that low-cost and rural providers deliver high-quality, cost-effective services, despite the flaws of current Medicare payment systems.
6)Congress is currently considering proposals to reduce regional inequities in Medicare spending and reward, rather than punish, providers which deliver high-quality, cost-effective Medicare services.
(B) SENSE OF THE SENATE - It is the Sense of the Senate that within the funding allocated to the Finance Committee for Medicare reform, the Committee is encouraged to promote geographic equity in Medicare fee for service payments and reward, rather than punish, providers which deliver high-quality, cost-effective Medicare services in all areas of the country.