Noteworthy News

President’s Proposal Includes Bad News for Urban Safety-Net Hospitals

Reduced Medicare bad debt reimbursement.  Lower medical education payments.  Tighter eligibility requirements for inpatient rehab care.  Rebased Medicaid DSH payments.  These are all among the $320 billion in health care cuts proposed in the President’s Plan for Economic Growth and Deficit Reduction released earlier this week – and together, these and other proposed cuts would be bad news for urban safety-net hospitals.

In all, President Obama’s proposal calls for $248 billion in Medicare cuts over ten years and $72 billion in Medicaid cuts over a similar period of time.  The Medicaid cuts include new limits on the provider taxes that many states use to help fund their Medicaid programs; a new, blended federal matching rate for Medicaid and the Children’s Health Insurance Program (CHIP); and revisions in the definition of income to be used when determining Medicaid eligibility.

NAUH strongly opposes these measures.  The association and its members will be taking their concerns and objections to their members of Congress in the days and weeks ahead.

Read more about the President’s proposal in the White House’s own summary.  A link for that summary can be found near the bottom of this pageUS Capitol Dome.

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