"Since joining the Ways and Means Committee three years ago, I have been fighting to address payment inequities within the Medicare program that penalize states like Oregon for providing high quality care at lower costs," said Rep. Blumenauer. "Today we're seeing a concrete example of how health reform is improving care for all Oregonians.  The $8.9 million dollars next year, and potentially $14.9 million the following year, will enable Oregon hospitals to continue to improve quality, access, and treatment."

Background

The negotiations led by Rep. Blumenauer and other members of the Oregon delegation were over regional differences in Medicare spending. Medicare beneficiaries living in high cost health care regions, such as Miami, Las Vegas, New York and Houston receive approximately 60% more services than those living in low-spending regions. Despite the extra services, they do not have higher quality of care or better healthcare outcomes.

For too long, the federal government has rewarded health care inefficiencies, which is  wasteful and requires taxpayers in more efficient, low-cost regions - such as Oregon, Washington, Wisconsin, and Minnesota - to subsidize expensive and unnecessary costs in high cost regions.

As a direct result of the delegation's efforts, these low-cost regions are now being rewarded through the health care reform bill.  Center for Medicare and Medicaid Services (CMS) recently released their proposed rule outlining how the $400 million of additional payments will be distributed to hospitals in counties that rank in the lowest quartile of Medicare spending.  Here is a summary: