Approved Budget Resolutions Preserve Obama’s Health Reform Framework

Last night, both chambers of Congress approved their respective budget resolutions or “blueprints” for federal spending for federal fiscal year (FFY) 2010. Both budget resolutions preserve major aspects of the agenda outlined by President Obama in his budget request to Congress last month, including the framework to achieve health care reform through the establishment of a Health Reform Reserve Fund this year.

With the cost of health care reform, including universal health care coverage, estimated at nearly $1 trillion over ten years, President Obama in his budget outline proposed the creation of a $634 billion Health Reform Reserve Fund to drive Congress’ development of health reform legislation this year. Specifics of how the reserve fund would be financed are not included in the Senate and House budget resolutions. It is likely however, that any efforts by Congress to achieve health reform will include some aspects of the Medicare payment policy reform outlined in the President’s budget.

Medicare payment reforms proposed in the President’s budget called for the implementation of a Medicare inpatient hospital value-based purchasing (VBP) program, payment reform surrounding Medicare hospital readmissions, and bundled payments for all services provided to a patient in the acute care and post-acute care settings. The savings to the federal government associated with these Medicare payment policy changes is significant. HANYS, in conjunction with Greater New York Hospital Association (GNYHA), will gather members of their respective quality committees to meet next week in Washington with key congressional health committee staff to discuss our perspectives on these reimbursement reform proposals.

Congressional leaders from both chambers are now set to begin work to reconcile the differences between the two resolutions and develop one budget blueprint for FFY 2010.

Contact: Kevin Kraweicki