Bush Administration responds to Medicare reimbursement questions

     The Bush Administration recently responded to the requests from the Ways and Means Chairman, Bill Thomas, (R-Calf.), on how Congress should fix the physician reimbursement payments.  The administration proposes to acquire funds from Part A payments to hospitals to pay for Part B payments, indicating that the administration is still unwilling to move from its stand that the fix be budget neutral.

     In the letter addressed to Rep. Thomas, it was stated that changes in hospital payments could be more than adequate to finance reasonable net increases in total payments to physicians and of the $190 billion the president's budget proposal to fund Medicare modernization and prescription drugs should be used for increasing fee-for-service Medicare payments.

     Chairman Bill Thomas responded to the Administration's recommendations in a letter addressed to Secretary Thompson of HHS and OMB Director Daniels and released the following statement:

     "The Administration's response regarding provider payments offers useful guidance as we begin the process of modernizing and strengthen the Medicare program.  I look forward to working with the Bush Administration and Democrats on the Committee in making the necessary adjustments to ensure seniors have access to high quality care at a price beneficiaries and taxpayers can afford."