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July 23, 2007

House Passes FFY2008 Labor-HHS Bill

Blocks Proposed IPPS Cuts, Increases Nurse and Children's Hospital GME Funding

On July 23, the U.S. House of Representatives passed by a vote of 276-140 the FFY2008 Labor, Health & Human Services and Education Appropriations bill (HR3043). The bill includes an IHA/AHA supported amendment offered by Reps. Jerry Weller (R-IL), John Lewis (D-GA), and Peter Welch (D-VT), that would keep CMS from prospectively cutting as much as $24 billion from inpatient hospital services over 5 years. The amendment also would delay for one year implementation of Medicare Severity Diagnosis Related Groups (MS-DRGs). The Lewis-Welch-Weller amendment was adopted on the House floor 412-12.

In addition to the IPPS provision, HR3023 would make available nearly $63.2 billion in discretionary funding for HHS programs, including increases for nursing and children's hospital graduate medical education. The bill next goes to the Senate for consideration.

IHA issued a member advocacy alert on July 18 and contacted Illinois delegation offices to enlist support for the IPPS amendment. The Association thanks our member hospitals for weighing in with their legislators and our delegation members who voted for the amendment. Special thanks to Illinois Congressman Jerry Weller for his support and for circulating a letter voicing initial opposition to the proposed cuts. Click here to see how your Representative voted on the amendment. 

Background:
As noted above, the amendment has two parts. One provision imposes a one-year delay on implementation of the Medicare Severity Diagnosis Related Groups (MS-DRGs) as included in CMS' proposed FFY2008 inpatient prospective payment system rule.

The second part blocks CMS from prospectively implementing the 2.4% "behavioral offset." This unfair and flawed CMS proposal would prospectively penalize hospitals for behaviors that have not even occurred and would cut as much as $24 billion from inpatient hospital services.

Hospitals strongly backed the Lewis/Weller amendment because CMS' proposed cuts not only would jeopardize hospitals' ability to ensure that Medicare patients receive vital care -- they would make it more difficult for hospitals to meet the needs of all the patients and communities they serve. The pressures associated with recruiting and retaining quality staff, meeting the rising costs of pharmaceuticals, implementing clinical and technology upgrades, and maintaining disaster preparedness are all intensified when hospitals cannot, at minimum, keep up with the cost of inflation. CMS' proposed cuts would hurt access to health care services for the very people the Medicare program was created, and their impact would ripple through the health and economies of communities in Illinois and across the nation.

Earlier this year, 269 House members signed a letter circulated by Congressmen Weller and Lewis opposing the "behavioral offset." That letter included the endorsements of 11 Illinois representatives. A similar Senate letter was signed by 63 senators, including both Illinois senators. Click here to view letter.