In talking to the nation about reforming the healthcare system on Saturday, President Barack Obama cited several more areas where costs could be cut—which is likely to draw unpleasant responses from healthcare providers.
These saving proposals, according to the president, will contribute an additional $313 billion over the next decade to pay for healthcare reform efforts—bringing the total offsets put forward by the administration to nearly $950 billion over 10 years. This would extend the solvency of Medicare’s Hospital Insurance Trust Fund by seven years to about 2024, the administration said, plus reduce beneficiary premiums for physician and outpatient services by $43 billion during the 10 years.
In comments Friday, American Hospital Association President and CEO Rich Umbdenstock, sharply criticized any payment cuts, saying paycuts were not reform. "This week we asked Disproportionate Share Hospitals to push back on proposed cuts. Expect a steady stream of similar calls for action in the weeks ahead."
The savings, as proposed by the administration, would come from these areas:
Also, additional savings would come from adjusting payment rates for physician imaging services to better reflect actual usage and adopting a Medicare Payment Advisory Commission recommendation for 2010 payments to skilled nursing facilities, inpatient rehabilitation facilities, and long-term care hospitals.