During House Hearing, Scully Says CMS Will Work More Closely With Small Businesses
Speaking at a May 16 hearing of the House Committee on Small Business, CMS Administrator Tom Scully "pledged to continue efforts to make the agency more business-friendly" and apologized for defying a subpoena last month to appear before the committee, CongressDaily reports. Scully listed several ways in which CMS is "improving its relationship with small business," including holding town meetings, working with the Small Business Administration and establishing "policy forums" for beneficiaries, providers, suppliers and health plans. He told the committee that not appearing at the hearing last month "had the unfortunate effect of shifting the focus away from what you and I care about -- small business providers" (CongressDaily, 5/16). In April, Scully refused to appear before the committee, objecting that he would have been seated with representatives of industries critical of some CMS policies. Committee Chair Donald Manzullo (R-Ill.) called for Scully's resignation (Kaiser Daily Health Policy Report, 4/12). Manzullo "accepted [Scully's] apology."
Medicare Reimbursement Authority
Scully also addressed the debate over whether Congress or the administration has the authority to adjust Medicare reimbursement rates to physicians. He "reiterated [CMS'] position" that the agency "has no power" to alter a 5.4% reimbursement rate decrease that took effect Jan. 1. "We recognize that the size of payment reductions this year may be difficult for some providers, but we do not have an administrative authority under the law to adjust payment levels for specific provider types or particular services," he said (Fulton, CongressDaily, 5/16). The American Medical Association and 40 other groups on May 13 released a legal analysis that found HHS has the authority to adjust the reimbursement formula. According to the analysis, prescription drug costs should not have been included in the formula. The analysis also stated that errors in 1998 and 1999 estimates led to the decrease in reimbursements this year. The analysis concluded that adjustments to the formula by HHS could increase physician reimbursements by $62 million. The Bush administration has said that only Congress can change the formula (Kaiser Daily Health Policy Report, 5/15). A HealthCast of the hearing is available online.
