In Washington…
Bush budget released, with good news for hospitals—
For the first time in more than a decade, cuts in Medicare payments to hospitals is not a part of the President’s budget. In the budget blueprint President Bush released at the beginning of March, there are no significant Medicare reductions and some good news. President Bush endorsed the largest increase ever for NIH by proposing a $2.8 billion increase for fiscal year 2002, he included a $100 million increase in funding for substance abuse and mental health services, and he proposed a $124 million increase in funds for community and migrant health centers. A Medicare prescription drug benefit, reforming HCFA operations, and a review of the HHS research agenda will also be priorities.
HHS Secretary Thompson lays out his agenda; NIH at the top of the list—
In a speech to the U.S. Chamber of Commerce, HHS Secretary Tommy Thompson said his top priorities are to double the NIH budget and complete fundamental Medicare reform. While he endorsed President Bush’s proposal to provide prescription drug coverage through state grants, he cautioned Congress not to forgo more comprehensive Medicare reform. He was also critical of pending managed care reform legislation, warning that it would be a mistake for the Federal government to step on states’ rights.
Bush stem cell research policy should be clear by August—
In a visit to the NIH in early March, HHS Secretary Thompson said the Bush administration will decide whether to permit Federal funding of embryonic stem cell research by August 15 and urged researchers with stem cell research applications to go ahead and submit them by the March 15 deadline.
National Governors’ Association makes Medicaid reform proposal—
Concern for spiraling Medicaid costs nationwide has prompted the National Governors Association (NGA) to propose a new policy that will allow states more flexibility in benefit design. The proposal includes allowing states to offer smaller benefits packages to higher-income people, and to develop cost-sharing arrangements for non-mandatory eligibility groups.
And on Beacon Hill…
Boston teaching hospital CEOs brief the Boston delegation on Medicaid and the uncompensated care pool—
During the last week in February, 10 Boston hospital CEOs sat down for lunch with a like number of House and Senate members of the Boston delegation for a frank talk about the inadequacy of Medicaid reimbursements and the need for shared responsibility in financing the uncompensated care pool. The session was hosted by Speaker Tom Finneran and Rep. Kevin Honan. Representing Partners were Jeff Otten, David Trull, Dr. Samuel Thier, Dr. James Mongan and Dr. Tom Durant.
Speaker Finneran’s annual address mentions hospital issues—
Massachusetts House Speaker Tom Finneran (D-Boston) said in his annual address to citizens of the Commonwealth that investing in health care is among his priority agenda items for the legislative session. Finneran’s two specific proposals focused on expanding dental coverage for uninsured and low-income patients, and expanding comprehensive health coverage for
breast and cervical cancers.
House Ways and Means Committee holds budget hearings, approves small FY 2001 supplemental—
At the end of February, the House Ways and Means Committee conducted budget hearings on Gov. Cellucci’s proposed $22.5 billion budget. A hospital delegation, organized by MHA, was on hand to testify in favor of financial relief to hospitals. Chairman John Rogers’ (D-Norwood) only public comment has been to indicate that he wants to stick with the current limitations on spending of tobacco settlement money. As noted, Gov. Cellucci has proposed to spend more of the tobacco money, with some of it going to hospital relief.
MGH and BWH nurse executives make the case for nursing legislation—
At the end of February, BWH’s Nancy Kruger and MGH’s Jeanette Ives Erickson sat down with Senate Health Committee Chairman Richard Moore to talk about his nursing legislation and offer Partners help in advancing the bills. Moore has proposed a combination of scholarships, loan forgiveness, and mentoring programs as an initial step toward addressing the nursing shortage. Kruger and Ives Erickson testified later in March at hearings on the bill.
Worth noting—T
he all-important February state tax collections were announced and showed a five percent increase over last February. Although revenue collections are slipping, they are still running $250 million ahead
of projections. It’s a coincidence that the hospital agenda for the year—Medicaid rates and pool relief-costs exactly that amount.