Medicare deal for Oregon as vote nears
Keith Chu, The Bend Bulletin
March 21, 2010
WASHINGTON — Oregon doctors and hospitals would see a bump in Medicare payments, and seniors might have an easier time finding a doctor, under a late concession to Oregon Democrats as part of the health care bill slated for a vote today in the U.S. House.
The change by Democratic leaders would benefit Oregon and 16 other states with low Medicare spending, including Washington and Wisconsin. It came just two days after Rep. Peter DeFazio, D-Springfield, threatened to vote against the $940 billion health care overhaul bill unless the change was made.
Doctors and medical providers in Central Oregon have complained for decades that Medicare's formula penalized them for operating efficiently compared with high-cost states like Florida.
Jim Diegel, CEO of Cascade Healthcare Community, said he and other members of the Oregon Association of Hospitals & Health Systems worked with Oregon members of Congress to push for the deal. "We're really proud that our delegation has acknowledged that this has been problematic for Oregon hospitals and Oregon physicians for a long time," he said Saturday.
Rep. David Wu, D-Portland, said the change will make it easier for older Oregonians to find a doctor. That's been a problem for many in Central Oregon, as many doctors have stopped accepting new Medicare patients.
"The shift to a Medicare payment system that is based on high-value care means we will move away from the volume-based system that has exasperated geographic disparities and led to millions of American seniors being unable to find a doctor," he said in a statement.
Diegel said the increased payments would buoy Central Or-egon's medical sector, including Cascade Healthcare Community, which has seen revenues drop over the past year.
"Any attempt at equity or increased payments ... is a move in the positive direction," Diegel said.
The new health care bill provision sets aside $400 million a year in 2011 and 2012 to increase Medicare payments to hospitals in counties receiving the bottom quarter of payment rates.
After 2012, President Barack Obama promised to launch a study to change the Medicare payments formula to make it more fair to states like Oregon. The study is not included in the health care bill, however.
That study, and the prospect of a long-term fix for Oregon hospitals and doctors, may be the most important part of the agreement, Diegel said. A similar agreement was included in an earlier version of the House health care bill, but wasn't included in the most recent version until Saturday.
Medicare spent $6,324 per beneficiary in the Bend hospital region, which includes Deschutes, Crook and Jefferson counties, along with a large part of Eastern Oregon. In comparison, the U.S. average was $8,304 per patient in 2006, the most recent data available, according to the Dartmouth Institute for Health Policy & Clinical Practice.
After the deal was announced, DeFazio and Rep. Kurt Schrader, D-Canby, who had been undecided, said they would support the health care bill. The bill is scheduled for a vote today.
Rep. Greg Walden, R-Hood River, has said he plans to vote against the health care bill, citing the hundreds of billions in new taxes it would create, along with a massive increase in government involvement in the health care system.
Oregon Association of Hospitals & Health Systems President Andrew Davidson quickly issued a statement in support of the agreement and the health care bill. Davidson said the state receives the fourth-lowest Medicare reimbursement rate in the nation, costing hospitals $1.7 billion annually.
"We are deeply grateful to the delegation, the current administration and to Democratic leadership for working with Oregon hospitals on this issue, which is tantamount to reducing the cost shift to commercial insurance and ensuring access to providers," Davidson wrote.
If the bill passes the U.S. House today, it will go back to the U.S. Senate, where votes are expected to begin Wednesday or Thursday.
Keith Chu can be reached at 202-662-7456 or at kchu@bendbulletin.com.
Link to the story: http://www.bendbulletin.com/apps/pbcs.dll/article?AID=/20100321/NEWS01/3210399
Building 2, Suite 100
Lake Oswego, Oregon 97035
503-636-2204 | Fax: 503-636-8310
info@oahhs.org
Copyright © 2009 Oregon Association of Hospitals and Health Systems. All rights reserved.