Sen. Russ Feingold Introduces Bill To Increase Regional Equity in Medicare Payments
Sen. Russ Feingold (D-Wis.) announced on Jan 4. that he intends to introduce legislation designed to eliminate "regional inequities" in the distribution of Medicare funds. According to Feingold, Wisconsin taxpayers pay the same amount in Medicare payroll taxes as those in other states, but receive "fewer benefits" due to regional cost differences. For example, seniors in Wisconsin receive an average of $3,795 annually in Medicare benefits, compared to $6,720 for Louisiana seniors. The cost of caring for seniors has "historically been lower" in Wisconsin, and as a result, Medicare spending in the state is 25% below the national average. Wisconsin's rates are the eighth-lowest in the country. Feingold said his bill would reform the Medicare payment system to "rewar[d], rather than punish" states that provide seniors with "high-quality, cost-effective Medicare services." The planned legislation would:
- Reform the current formula used to determine Medicare payment rates, requiring "improved fairness in payments to physicians and other health professionals under Medicare Part B."
- Authorize a series of demonstration projects to "reward" providers who deliver "high-quality, low-cost" care under Medicare and require states that receive approval for the pilot programs to increase the number of such providers.
- Authorize the HHS secretary to use Graduate Medical Education funds to create programs that increase access to health care in rural and urban areas through clinical rotations and other "incentives."
- "Promote equity" in Medicare payments to nursing homes by requiring CMS to use data it is collecting on nursing home wages to reform payments to skilled nursing facilities by Oct. 1, 2002 (Feingold release, 1/4).
