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ASA NEWSLETTER
 
 
March 1998
Volume 62
Number 3
 
WASHINGTON REPORT

Congress to Consider Medicare Expansion, Possible Limits on Managed Care Abuses

Michael Scott, Director
Governmental and Legal Affairs



Shortly before delivering his State of the Union address on January 27, 1998, President Clinton proposed to open up the Medicare program for two relatively small groups of older Americans who increasingly have difficulty in buying affordable health insurance. If enacted, the proposal would represent the first time that people, otherwise ineligible for Medicare, would be permitted to "buy in" to the program.

The first group covered by the President's proposal would include individuals aged 62 to 64, who could sign up for Medicare by paying a fee of about $300 a month. After turning age 65, they would then pay a monthly surcharge over the normal premium of between $10 and $30, depending on how soon before age 65 they had signed up. The second category, so-called displaced workers beginning at age 55, would be allowed under certain circumstances to buy in at a premium of $400 a month.

Further details of the President's proposal have not yet been defined, but the essential purpose would be to assist a relatively small group, estimated to number about 300,000, to bridge the health insurance gap between employer-provided insurance and Medicare in an era when many Americans are retiring or being retired before age 65.

Most congressional observers believe that the Administration's suggested premiums will not be adequate to cover the cost of these new beneficiaries, especially if one assumes the proposal would principally be attractive to sicker retirees. It is generally expected, however, that the proposal will receive serious consideration during the current session. The greatest likelihood is that ultimately it will be referred to the newly constituted presidential advisory commission on Medicare, now that Senator John B. Breaux (D-LA) has been named chair.

What has not been unnoticed, however, is the Administration's possible hidden agenda: as a practical political matter, the only way the new commission could consider raising the eligible Medicare age from 65 to, say, 67, is to make sure that a safety net is in place for those forced into early retirement. Conceptually, the commission, in trying to rein in the Medicare program, has before it the Homeric choice between the Scylla guards to port and the Charbydis to starboard: raise taxes or cut benefits. But raising the eligibility age and perhaps adding means-testing premiums steer a shaky course in between.

Besides the President's proposal on retirees, the only health care issue expected to receive serious congressional attention in 1998 will involve the various proposals to deal with managed care abuses, or stated more euphemistically, to establish greater patient protections. The President weighed in on the issue during his State of the Union address, declaring that "medical decisions ought to be made by medical doctors," not insurance clerks.

Representative Charles Norwood (D-GA) used the long congressional recess as an opportunity to lobby his "Patient Access to Responsible Care Act" (H.R. 1415) to various medical groups, including the Patient Access to Specialty Care Coalition (of which ASA is an active member) and the Board of the American Medical Association during its December meeting. Both groups have given only qualified endorsements, principally because of a provision in the bill that would require managed care organizations not to discriminate among providers on the basis of licensure. The AMA has told Representative Norwood that it is prepared to endorse his bill if the antidiscrimination provision is amended to make clear that managed care organizations can discriminate on the basis of training and experience, and ASA is supporting the AMA's efforts.

In late January, a coalition of business groups and health care maintenance organizations announced the kick-off of a major campaign to kill patient protection legislation in this Congress, saying that the various proposals would unacceptably raise premium costs. The GOP congressional leadership is not unsympathetic to this view, essentially believing that the question of patient protections should be left to the marketplace to solve. In the last analysis, the issue ultimately will be whether the Republicans eventually decide that they must enact at least some protections, as they head into the November elections.

HCFA Extends Comment Period For Conditions of Participation

With less than a week to go before the February 17 deadline, HCFA announced that it was extending, for 60 days, the period for public comments on its proposal to eliminate the long-standing federal requirement that nurse anesthetists be supervised by a physician. The new deadline is April 20.

It is not precisely clear why HCFA took the action that it did. We are aware that some influential health policy advocates believe that, in general, the proposed rule - of which the proposal on nurse anesthesia is only a small part - is not well-drafted and requires extended analysis.

Based on copies of letters received in the Washington Office, I estimate that by the time of extension, about 3,500 ASA members had filed comments with HCFA. Commitments of support had also been received from the American Medical Association, the American College of Surgeons and other surgical groups, and numerous community groups. The extension obviously permits us time to gain even greater support. At the same time, I want to acknowledge our appreciation to ASA members who have already written, and to apologize for the fact that it has not been possible for us to individually acknowledge receipt of the letters.

At this writing, it is reasonable to anticipate that the American Association of Nurse Anesthetists will use the additional time to step up its campaign, evident from the beginning of the original comment period, to attempt to gain congressional support for the proposed HCFA rule. Needless to say, ASA representatives will respond to this effort, focusing particularly on the fact that Medicare beneficiaries have made absolutely clear their desire to have a physician involved in their anesthesia care.

ASA, AANA Meet With HCFA On Medicare Payment Rules

Acting pursuant to authority given by the 1997 House of Delegates, ASA President William D. Owens, M.D., and President-Elect John B. Neeld, Jr., M.D., met in Baltimore, Maryland, on February 10 with representatives of the AANA and HCFA to discuss possible changes in reimbursement rules for Medicare medical direction cases. ASA's principal objectives in participating in the meeting were to gain for its members somewhat greater flexibility - consistent with modern anesthesia practices - in the conditions for medical direction reimbursement and to persuade HCFA to establish workable documentation requirements for reporting compliance.

There appeared to be a significant level of agreement between ASA and AANA representatives as to appropriate changes, and HCFA has agreed to take the matter under advisement. It appears possible that, based upon the discussion at the meeting, HCFA may propose changes in its reimbursement rules in the 1999 Medicare Fee Schedule proposed rule, due to be published May 1.


The comment period on the HCFA proposed rule change has been extended to April 20. Address your comments to:

Nancy-Ann Min DeParle, Administrator
Health Care Financing Administration
Attention: HCFA-3745-P
P.O. Box 7517
Baltimore, MD 21207-0517

Send an original and 3 copies

Write now to your representatives in Congress who represent you and your patients.

 


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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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