Legislation Would Provide $42 Million for 11 Local Hospitals 

WASHINGTON - Congressman Paul E. Kanjorski (PA-11) successfully worked with other Members in the House of Representatives to overwhelmingly override the President's veto of H.R. 6331, the Medicare Improvements for Patients and Providers Act of 2008, by a vote of 383-41.  This legislation would provide higher Medicare reimbursements for 11 area hospitals in Northeastern Pennsylvania, totaling over $42 million.  If H.R. 6331 is enacted, Congressman Kanjorski would have helped secure almost $200 million in more accurate Medicare reimbursements for area hospitals over about five years.

This bill extends Section 508 of the Medicare Modernization Act until September 30, 2009, ensuring that hospitals receive the fair Medicare reimbursements that they deserve.  As a result, 11 hospitals in Northeastern Pennsylvania would continue to receive these Medicare reimbursements totaling over $42 million, including 8 hospitals in Pennsylvania's 11^th Congressional District totaling almost $34 million. 

"Today, the House quickly reacted to the President's deplorable veto of the Medicare legislation this morning, by overriding his veto just a few hours later.  I am confident the Senate will do the same this evening," said Congressman Kanjorski.  "We must continue to protect the rights of our seniors and hospitals, and this legislation does just that.  It will ensure that hospitals receive the fair Medicare reimbursements that they deserve, helping seniors, their families, doctors, and other hospital employees at 11 hospitals in Northeastern Pennsylvania.  Now these hospitals can continue to afford to treat all the Medicare patients that need care."

On April 23, Congressman Kanjorski led 30 other Members in sending a letter to Congressional leaders requesting that they extend Section 508.  Without an extension, on September 30, these 11 local hospitals would stop receiving accurate Medicare reimbursements.  As a result, this action was included in H.R. 6331. 

In our current healthcare system, Medicare reimburses hospitals for patients covered by the program.  Unfortunately, the amount of reimbursement that hospitals receive does not fully reflect the relative costs of wages and salaries for workers at the 11 hospitals in Northeastern Pennsylvania.  As a result, these hospitals fail to receive the Medicare reimbursements that they deserve.  Section 508 aims to deal with the shortcomings in calculating fair Medicare reimbursements.  It allows these 11 hospitals to qualify for the higher reimbursements that nearby areas receive, which would increase their annual Medicare reimbursements by millions of dollars. 

H.R. 6331 would also eliminate the pending 10.6 percent cut in Medicare payments to doctors that is set to take place on July 1.  Instead, it provides a 1.1 percent increase in Medicare physician payments through 2009. 

The bill would also postpone the Durable Medical Equipment (DME) competitive bidding program for another 18 months.  This program, which was implemented by the Centers for Medicare and Medicaid Services, unfairly discriminates against small local providers of durable medical equipment, such as many companies that have served senior citizens in Northeastern Pennsylvania so well.  Congressman Kanjorski has continuously supported delaying this program. 

The bill previously passed by veto-proof margins in the House by a vote of 355 - 59, and in the Senate by unanimous consent.  The President vetoed the legislation this morning.  Since the House overrode that veto, the Senate is expected to override the veto this evening, leading to the enactment of the bill.

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Editor's Note:  Click here to view a list of the 11 hospitals in Northeastern Pennsylvania affected by the Section 508 extension, which also identifies the reimbursements they will receive until September 30, 2009.  Click here to view a copy of the letter Congressman Kanjorski and 30 other Members sent to House leaders on April 23.