AAPA

Lower income from payroll taxes means that Medicare's Part A trust fund will hit lean times by 2017. For each dollar claimed by hospitals, Medicare would be able to pay only 81 cents. Large increases in Part B premiums are also forecast, starting in 2010. The immediate response from the Administration is that reforming health care will slow the spending spree. Congress is required by law to maintain Medicare's fiscal viability, which would mean reducing benefits, raising taxes, or cutting provider payments. Everyone for health reform, raise your hand!

Use PAs, Save $

AAPA commissioned the Lewin Group, a prestigious economic consulting firm, to calculate the cost of allowing PAs to order home health, skilled nursing, and hospice care, and to provide hospice services under Medicare. The report, received this week, estimates a net savings of approximately half a million dollars over five years. Not enough to prevent premium increases, but way better than the $50 million cost that the Congressional Budget Office estimated a couple of years ago. The Lewin numbers bolster our arguments for making this legislative change.

Health Reform Happenings

• Six big industry groups representing medical devices, private insurers, hospitals, physicians, drug companies, and unionized health care workers promised President Obama they would cut $2 trillion, or 1.5 percent annually, from the growth of health care costs over the next decade. Details are due June 1. They are expected to include administrative simplification, coordinated care, evidence-based best practices, and obesity prevention.
• The President called this "historic," given that these groups previously have been at odds regarding reforms. He repeated the Administration's stance that reform must reduce costs, guarantee choice, and ensure that all Americans have quality, affordable health care.
• House Democratic leaders vowed the next day to pass a comprehensive reform bill by July 31.
• In the Senate, the Finance Committee began discussing another white paper, this one on how to pay for the changes that may cost hundreds of billions of dollars.
• Over at Health and Human Services, Secretary Kathleen Sebelius picked staff for the department's Office of Health Reform, a counterpart to the one located at the White House.

A War of Words

Congressional Democrats and Republicans are getting advice on their health care reform messages. A Republican strategist described the Democratic plan as a big government takeover that would deny care, interfere with doctor-patient relationships, and restrict patients' choices. In response, Democratic advisors talk about bringing down costs, giving more people access to coverage, and letting people choose their own doctors and insurance plans. Salesmanship and rhetoric - all part of politics, I guess.

Funds for PA Program Grants

AAPA sent testimony to the House Appropriations Labor-HHS Subcommittee recommending funds for health professions education, including $7 million for PA program grants in FY10. That amount is equivalent to the high reached in FY05 and would be a start toward addressing the chronic underfunding of these grants in recent years.

See You in San Diego

Congress will be taking its Memorial Day break May 25-June 1, and we will be in San Diego for the AAPA annual conference starting next week, so The Latest Word will be on hiatus until June 4. When TLW returns, it will be a blog on our Web site. The comments section will give you plenty of space to ask questions, send criticism and suggestions, or debate the issues. The Web site has been redesigned - have you seen it?