Scully Discusses Health Costs on C-SPAN
CMS Administrator Tom Scully appeared on C-SPAN's "Washington Journal" on Oct. 28 to discuss the issue of rising health care costs. Scully talked about factors contributing to increased health care expenses, such as higher costs for new technologies, prescription drugs and physician malpractice insurance, and he addressed ways that health insurance plan drug formularies can negotiate discounts. Scully also discussed a pilot Medicare preferred provider organization program announced in September by the Bush administration ("Washington Journal," C-SPAN, 10/28). Under the three-year demonstration project, which does not require legislative approval, seniors in 23 states will have greater access to PPOs through the Medicare+Choice program. HHS will reimburse participating PPOs at either 99% of the rate for traditional fee-for-service Medicare coverage or the local Medicare+Choice rate, whichever is higher. The PPOs agree to cover all services available under traditional Medicare and may choose to provide additional coverage, such as prescription drug benefits. According to federal officials, all 33 PPOs participating intend to include some kind of prescription drug coverage in their plans (Kaiser Daily Health Policy Report, 8/28).A video excerpt of Scully's comments is available in RealPlayer online. This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
