Endocrine Insider
May 13, 2009
Earlier this week, a coalition of providers, hospitals, insurers and others met with the Obama Administration to outline its commitment to healthcare reform. The coalition was developed to demonstrate agreement among a wide group of stakeholders on areas of common interest in healthcare reform. The crux of the group’s commitment is a promise to reduce the annual health care spending growth rate by 1.5 percentage points, creating a savings of approximately $2 trillion during the next 10 years. This commitment comes on the heels of a statement made earlier this month by Karen Ignanni, president of America’s Health Insurance Plans (AHIP), who invited additional regulation of the health insurance industry under the implementation of broad-based health reform.
Comprising many health groups, including AHIP, Pharmaceutical Research and Manufacturers of America, Advanced Medical Technology Association, American Hospital Association, American Medical Association (AMA), and Service Employees International Union, the coalition agrees on the need for health reform that provides coverage and high-quality, affordable healthcare for all Americans. The stakeholder group proposes savings though various means, including medical liability reform, aligning quality and efficiency, reducing hospitalization, managing chronic disease, and other proposals. Details on these proposals have not yet been released. The Endocrine Society continues to work with the AMA and other specialty societies on areas of healthcare reform important to endocrinologists and their patients.
In other health reform news, Senator Baucus (D-MT) has stated that plans for reform likely will not include a permanent fix to the Medicare physician payment system, according to CQ Today. Physicians are slated to experience a 21% cut to reimbursement in 2010 under the current payment formula, the sustainable growth rate (SGR). Last week, Senator Baucus and Finance Committee Ranking Member Charles Grassley (R-IA) released a proposal for a short-term Medicare physician payment fix, in addition to other changes to the program. Under the Committee's plan, physicians would be eligible for new bonuses for providing higher-quality, lower-cost care. According to the Finance proposal, the SGR would be updated with a temporary payment fix in 2010 through 2012. Afterward, some scheduled payment reductions could be implemented, though no final proposal detailing the extent of these reductions is currently in place, and the payment options could change. The Finance Committee proposal states that in addition, other payment bonuses would be developed to offset some of the payment reductions caused by the SGR. The Endocrine Society continues to advocate for the repeal and replacement of the sustainable growth rate and will support policies that have a positive effect on the practice of endocrinology.
