Senate Finance Committee Begins Mark Up on Health System Reform Proposal

The U.S. Senate Finance Committee held three days of markup this week on the health system reform proposal drafted by Committee Chair Max Baucus (D-Mont.). As reported previously, the legislation differs significantly from the bill under consideration in the House. Notably, the legislation includes a one-year patch to prevent the scheduled 21 percent cut in Medicare physician payments in 2010, instead of the sustainable growth rate (SGR) repeal that has been proposed in the House. In addition, the Senate Finance Committee proposal would: (1) mandate physician participation in the Centers for Medicare and Medicaid Services Physician Quality Reporting Initiative, instituting negative payment adjustments for non-reporting physicians in 2012; and (2) create an Independent Medicare Commission to rein in program spending, potentially fast-tracking provider payment cuts as early as 2015. The chairman's mark considered by the committee this week also included an additional and significant proposal that would affect Medicare's physician payment system.

During three days of markup, several attempts to include medical liability reforms in the legislation were ruled out of order by Chairman Baucus because the issue falls outside the committee's jurisdiction. An amendment offered by Sen. John Cornyn (R-Texas) to replace the one-year positive Medicare physician payment update with a two-year freeze was defeated. Another amendment offered by Sen. Cornyn that would require all members of Congress to enroll in Medicaid also failed. The committee is scheduled to resume its deliberations on Tuesday, Sept. 29. To view a news release on the Baucus plan go to http://finance.senate.gov/press/Bpress/2009press/prb091609a.pdf 

The Kaiser Family Foundation (KFF) has also compiled an interactive tool to compare the leading health reform proposals. To view the information provided by KFF go to: http://www.kff.org/healthreform/sidebyside.cfm