REPORT BY CENTERS FOR MEDICARE AND MEDICAID SERVICES ALSO NOTES HOSPITALS WOULD BE FORCED TO STOP ACCEPTING MEDICARE

Washington, Nov 16, 2009 - “Millions of seniors throughout the nation rely on Medicare for their health needs, and one of the reasons I voted against the Pelosi healthcare bill was due to its cuts in Medicare,” said Rep. Cliff Stearns (R-Sixth). “The report by the Department of Health and Human Services’ Centers for Medicare and Medicaid Services (CMS) found that the $500 billion slashed from Medicare in the Pelosi bill would sharply reduce benefits for seniors and could jeopardize access to care for millions of others.”

Added Stearns, “According to CMS, the Medicare cuts would reduce the number of hospitals accepting Medicare, reducing access to care for millions of seniors.” The Report states that the Pelosi bill, H.R. 3962, “would cause Medicare payment rates to grow more slowly than…the providers’ costs of furnishing services to beneficiaries. Thus, providers…might end their participation in the program (possibly jeopardizing access to care for beneficiaries).”

Supporters of H.R. 3962 claim that the measure would reduce healthcare costs. However, the CMS Report notes that H.R. 3962 would raise the cost of healthcare by $289 billion over 10 years. The Report states, “With the exception of the proposed reductions in Medicare payment updates for institutional providers, the provisions of H.R. 3962 would not have a significant impact on future health care cost growth rates.”