Must Find Long-term Fix For Health Care Safety-net

WASHINGTON – U.S. Rep. Diana DeGette, Vice Chair of the Committee on Energy and Commerce, today reacted to the news that the Department of Health and Human Services (HHS) is temporarily extending the Moratoria on two of the Centers for Medicare and Medicaid Services (CMS) rules, Public Provider and Graduate Medical Education (GME). Moratoria on these two rules will now be extended until August 1, 2008.

“While this allows more time to resolve the impasse, we must still find a long-term solution,” DeGette said. “The seven draconian regulations proposed by the Administration will not only have a devastating effect on our entire country’s safety-net system, but also on the financial stability of the safety-net provider community in Colorado. Just these two regulations alone would have a drastic impact on Colorado at a loss of over $150 million in federal funds in 2008.”


IMPACT OF ALL SEVEN REGULATIONS ON COLORADO

Two Regulations with new August 1 Moratoria

•    Cost limits for public providers (CMS 2258-FC)
Loss of federal funds in 2008: $142.2 million Over 5 years: $711 million

•    Payment for graduate medical education (CMS 2279-P)
Loss of federal funds in 2008: $12 million Over 5 years: $60 million

Other Regulations

•    Payment for outpatient hospital services (CMS 2213-P)
Loss of federal funds in 2008: Not specified Over 5 years: Not specified

•    Provider taxes (CMS 2275-P)
Loss of federal funds in 2008: None Over 5 years: None

•    Coverage of rehabilitative services (CMS 2261-P)
Loss of federal funds in 2008: Not specified Over 5 years: Not specified

•    Payments for costs of school administrative and transportation services (CMS 2287-P)
Loss of federal funds in 2008: $1.4 million Over 5 years: $7 million

•    Targeted case management (CMS-2237-IFC)
Loss of federal funds in 2008: $1.8 million Over 5 years: $9.2 million

“Denver Health, one of our nation’s premiere safety-net hospitals, takes an innovative approach to cutting costs and waste. We need to find a permanent solution to addressing abuse in the system without harming our entire health care safety-net system,” concluded DeGette.  


Below is the news from the Department of Health and Human Services:

“Facing a looming adverse court decision and pending action by Congress to extend the moratorium, HHS Secretary Leavitt indicated yesterday that the Administration would "voluntarily refrain from making these rules [the public provider cost limit and graduate medical education (GME) rules] effective until August 1, 2008, more than 60 days after the moratorium expires.”

Click here to read a Congressional Report on the impact of the seven regulations on the country, including Colorado.

DeGette Cautions We Must Find Permanent Fix Without Harming Safety-Net System; Two Regs will Costs Colorado Over $150 Million