U.S. House of Representatives Passes Medicare-Health Families Legislation
[Posted 08/02/07]

The U.S. House of Representatives late last night passed the Medicare-Healthy Families legislation (HR 3162) by a largely partisan vote of 225 to 204. This legislation is critical to preserving access to care in California.

The bill (known as the Children’s Health and Medicare Protection Act of 2007) would stop the 15% percent physician pay cut and institute .5 percent payment increases for the next two years. It would also update California’s geographic payment localities, and prevent any geographic payment reductions for three years.  It would also and reauthorize the Healthy Families program. Although this bill is not a long term fix, it will allow CMA three years to work with Congress to craft viable alternatives to Medicare’s flawed payment formulas.

These reforms would be paid for by increasing the tobacco tax, which would raise $20 billion, and gradually equalizing Medicare Advantage health plan rates with fee-for-service rates. Currently, Medicare Advantage plans are paid on average 12 percent more than fee-for-service physicians. Bringing plan rates in line with fee-for-service physician rates could save as much as $50 billion.

All California Democrats voted for the bill. Please be sure to call and thank them for their support.

The bill now moves to a House-Senate conference committee.

Contact: Elizabeth McNeil, 415/882-5176 or emcneil@cmanet.org.