CAREGIVERS USA NEWS
Vol. I, No. 9
January 6, 2003
HEALTH CARE TOPS CONGRESS' AGENDA
Health care is at the top of the must-do list as the 108th
Congress convenes. Republicans control the House, Senate
and White House and party leadership has identified health
care as a critical, make-or-break issue in the 2004 elections,
putting intense pressure on Congress to make visible progress
this year. The new Senate Majority Leader, former transplant
surgeon Bill Frist (R-Tenn.), is expected to lead the GOP effort
to overhaul the health care system. Top priorities include:
- Some kind of prescription drug benefit for Medicare
recipients;
- Tax credits for the uninsured;
- Limits on medical malpractice damage awards.
Another key player is Sen. Charles Grassley (R-Iowa), who
will chair the Senate Finance Committee, the key committee
for health care legislation.
Grassley has a lengthy record of involvement in aging,
caregiving and other health care issues and was instrumental
in passage of the Family Caregivers Act.
BUT FIRST ... A BUDGET
Before it gets embroiled in remodeling the health care
landscape, Congress must pass a budget for the current fiscal
year, which began last October. The House and Senate passed
appropriations bills before adjourning but did not negotiate a
final version to send to the White House. The bills passed in
the last session are no longer binding and staff members
worked through the holidays to try to build the framework
for a budget that both houses will accept.
Several major issues remained unresolved at the end of the
last session, including ...
- Older Americans Act programs are in serious danger of
being cut. The Senate approved increased funding for the
National Family Caregiver Support Program, home-delivered
meals and supportive services and senior centers. But that
funding is in serious jeopardy as the two houses try to
reconcile a $10 billion disparity.
- Modernization funds for older housing developments.
Neither the House nor Senate has approved new funding for
preservation or acquisition of new properties, although each
has approved varying levels of funding for assisted living
conversions, rental assistance and other programs vital to
seniors.
- The Medicare reimbursement formula. The last Congress
was paralyzed by competing lobbying efforts in its attempts
to revise the faulty reimbursement formula. This one may be
too.
MEDICARE REIMBURSEMENT
Physicians, nursing homes, home health care providers and
others are demanding that Congress to fix a glitch in the
Medicare funding formula that has reduced reimbursements
to providers. Physicians who treat Medicare patients were
hit with a 4.4% cut in fees on January 1, on top of last year's
5.4% reduction. Home health care took a 15% cut in October,
nursing homes were cut 10% and rural beneficiaries and
caregivers will take a 10% cut in April 2003. The cuts were
mandated under the Balanced Budget Act passed by
Congress in 1997. At that time, it was estimated that the cuts
to home health care would amount to $16.1 billion over a
five-year period. In fact, the actual reductions are
approaching $72 billion.
"We have no choice but to prepare action plans for all
scenarios," said Tom Connaughton, president of the
American Association For Home Care. "We have to convince
lawmakers and policymakers that homecare is part of the
solution to keep the aging baby boom generation out of
institutions."
IF PROOF IS NEEDED ...
Centennial HealthCare - which operates 86 nursing homes in
19 states - filed for Chapter 11 bankruptcy just after Congress
adjourned in December, prompting the American Health
Care Association (AHCA) to warn that failure to reverse the
cuts may cause a new wave of bankruptcies similar to those
that occurred in 1999 and 2000 after a prior round of
Medicare cuts.
"The unfortunate bankruptcy involving Centennial serves as a
dangerous red flag to Congress and the Administration that
there is a serious human cost from the $1.8 billion Medicare
cuts," said Charles H. Roadman II, M.D., President of AHCA.
"There is now reason to worry that we may be on the brink of
returning to the horrendous situation of just three years ago
when nearly 2000 facilities serving some 200,000 frail,
disabled and elderly were driven into bankruptcy by similar
Medicare cuts."
STATES FACE $17.5 BILLION HEALTH-CARE GAP
The National Conference of State Legislatures estimates that
states face a $17.5 billion budget gap over the next six months.
The crisis results from flattening tax revenues and increasing
health care costs as a sagging economy leaves more citizens
without health insurance, forcing them to rely on Medicaid.
States also face huge expenses to increase their ability to deal
with terrorism. Tough choices will be made in state capitols
across the country, the NCSL predicts.
www.ncsl.org
TENET INQUIRY MAY WIDEN
The Justice Department probe of Tenet Healthcare may spread
beyond the 19 hospitals targeted in subpoenas issued Friday.
The government is looking for evidence that Medicare
overpaid Tenet, the nation's second largest hospital chain
with 114 hospitals. The initial subpoenas "could be a
precursor" to a more comprehensive investigation, Reuters
quoted a government official as saying. Tenet has received
about $1.5 billion in "outlier" payments since fiscal year 2000.
Outlier payments are paid under a special formula based on
statewide averages.
CAREGIVERS-USA OPENS NEW ELDERCARE SECTION
Caregivers-USA.org, a nationwide Internet database that
helps family caregivers find local services and agencies is
being expanded to make it easier for caregivers to find
specific service providers in their community. The new
categories are presented graphically as the "Family Tree of
Elder Caregiving," with major "branches" representing broad
categories of services. The expansion is in response to
feedback from service providers.
atsh.org/news/cg_usa.html
ARIZONA FAST-TRACKS NURSE TRAINING
The Carondelet Health Network, University Medical Center
and the University of Arizona College of Nursing in Tucson
are collaborating to offer an accelerated nursing program for
college graduates. The 14-month program, beginning in June,
will provide financial support for "mature individuals with
proven academic track records to 're-career' as nurses," college
officials said. A total of 48 students will have their tuition
entirely covered by either Carondelet or UMC, committing to
work for one of the organizations for two years after
graduation.
$2 MILLION TO TRAIN UTAH NURSES
Intermountain
Health Care in Salt Lake City is donating about $2 million to
help Utah colleges and universities prepare more nurses and
other health professionals. The donations include $1.5 million
in funding to the departments of nursing at Salt Lake
Community College and Utah Valley State College to train
and graduate 144 more registered nurses over the next three
years.
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Caregivers USA news is published by the Thou Shalt Honor Foundation. The editor is James R. Hood, who can be reached at jhood@thoushalthonor.org
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Copyright © 2003, Thou Shalt Honor Foundation
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