SCHIP Compromise Bill Unlikely To Include Medicare Revisions

Congressional negotiators have agreed not to include revisions to Medicare in compromise SCHIP legislation that would reauthorize and expand the program, and lawmakers could vote on compromise legislation next week. The draft compromise bill, announced on Sunday, closely resembles the Senate version of SCHIP legislation, which would provide an additional $35 billion in funding over the next five years and bring total spending on the program to $60 billion. The additional funding would be paid for by an increase in the tobacco tax, which would be similar to the 61-cent-per-pack tax proposed in the Senate version. The compromise bill does not include provisions of the House bill that would reduce payments to Medicare Advantage plans to help fund an expansion of the program, leaving a cigarette tax increase as the primary funding source for the legislation. A "major motivation" for lawmakers to reconsider revisions to Medicare is the scheduled physician reimbursement rate cut. Reducing payments to MA plans could help provide funds to delay the physician reimbursement cuts. The administration has asked Congress to send the president a short-term extension of the program. Congress needs to pass a clean extension now so low-income children will not lose their coverage and we will have sufficient time to continue to work on this issue. Democrats have said they will pass an extension of the program after the president issues a veto