fiscal cliff Archives - Safety-Net Association of Pennsylvania

Western PA Hospitals Worry About Fiscal Cliff, Part 2

No sooner did hospitals in western Pennsylvania breathe a sigh of relief over escaping the worst possible scenarios in the fiscal cliff crisis than they looked ahead and saw the fiscal cliff sequel: March 1, when all Medicare payments will be cut two percent unless Congress acts to prevent that reduction.
With Medicare accounting for 40 percent, 50 percent, and even 60 percent of revenue in some western Pennsylvania hospitals, providers are concerned about the impact the two percent sequester could have on their overall financial health.
Such a loss would be especially hard to bear for the area’s safety-net hospitals, which typically have fewer insured patients than other hospitals and therefore are more dependent on their Medicare revenue.
Learn more about why western Pennsylvania hospitals are concerned about March 1 in this Pittsburgh Business Times article .

PA Safety Net Admin2013-01-09T06:00:09+00:00January 9th, 2013|Uncategorized|Comments Off

Will Fiscal Cliff Deal Make Medicaid, Medicare More Vulnerable?

The relative lack of spending cuts included in the fiscal cliff/Medicare doc fix deal passed by Congress last week could increase the pressure to reduce costs in key safety-net programs like Medicare, Medicaid, and Social Security.
Or so some policy analysts believe.
Many members of Congress supported the fiscal cliff bill only reluctantly because of it lacked the bigger spending cuts they sought, the thinking goes. Now, with another fiscal cliff deadline looming on March 1, when the previously passed sequestration law takes effect, many who compromised last week will be demanding bigger cuts in exchange for their vote.
As a result, Medicare and Medicaid, two of the federal government’s fastest-growing expenses, are expected to be targets for those in search of cuts. In addition, Medicare has proven to be among the first places many officials look in their search for savings.
Any attempt to implement additional reductions in Medicaid and Medicare, beyond those already scheduled to take effect through the Affordable Care Act and last week’s fiscal cliff bill, would be especially damaging to Pennsylvania’s private safety-net hospitals.
Read more about how last week’s budget solution is far from the end of the threat to Medicare and Medicaid in this Boston Globe article .

PA Safety Net Admin2013-01-08T06:00:47+00:00January 8th, 2013|Uncategorized|Comments Off

Medicaid at Risk in Fiscal Cliff Talks

If Medicaid is a health care program for at-risk low-income people, it appears that Medicaid itself is at risk during the current fiscal cliff talks in Washington, D.C.
While Medicaid was left untouched by last year’s sequestration bill, it is now viewed by growing numbers of policy-makers as a potential source of savings to help stave off the fiscal cliff.
Several aspects of Medicaid, in particular, appear to be vulnerable in the coming weeks. They include Medicaid provider taxes, which are incurring growing opposition in Washington and which, if ratcheted back, could save more than $25 billion; supplemental payments for Medicaid primary care providers, scheduled to take effect on January 1, which if eliminated would save $13 billion; better management of dual eligibles, which could save $12 billion; and medical equipment spending, where a competitive bidding program similar to that currently being introduced for Medicare could save $5 billion.
While all of these cuts would hurt Pennsylvania’s safety-net hospitals, those hospitals would particularly be affected by any reduction in either the rate at which the federal government matches the state’s Medicaid expenditures or in its ability to levy provider taxes, which are a key contributor to the financial foundation of the state’s Medicaid program.
Learn more about how Medicaid figures in the current fiscal cliff talks and how policy-makers are increasingly looking to Medicaid for savings in this Politico article .

PA Safety Net Admin2012-12-17T06:00:28+00:00December 17th, 2012|Uncategorized|Comments Off

Reform Medicaid Provider Tax, Editorial Urges

In a recent editorial, the Washington Post called for the federal government to reform the provider taxes that most states use to help finance their Medicaid programs.
Provider taxes essentially enable states to increase the effective rate at which the federal government matches their Medicaid spending. Past efforts to limit provider taxes have failed, but the Post calls for reform to be phased in over a number of years.
Pennsylvania currently levies two such taxes: a state-wide hospital assessment and a Philadelphia assessment. Both are important parts of the financing of the state’s Medical Assistance program. Provider taxes are thought to be on the table during the current fiscal cliff negotiations between the Obama administration and congressional leaders.
Read the Washington Post editorial on Medicaid provider taxes here .

PA Safety Net Admin2012-12-04T06:00:58+00:00December 4th, 2012|Pennsylvania Medicaid policy|Comments Off

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