Lawmakers, policy experts and officials from several healthcare groups offered both praise and criticism of President Barack Obama's $4.1 trillion budget proposal, which was released Tuesday.
American Hospital Association Senior Vice President of of Public Policy Analysis and Development Ashley B. Thompson showed concern about Medicare payment reductions to providers. The budget calls for nearly $420 billion in Medicare payment reductions over 10 years. Regarding the issue, Ms. Thompson said, "The significant cuts proposed in today's budget would jeopardize hospitals' ability to keep the promise of maintaining access to vital healthcare services. These reductions are ill-advised at a time when Medicare and Medicaid do not cover the costs of caring for patients."
The AHA did show support for some of the budget's provisions. "On a more positive note, the administration's proposed budget would rein in increasing drug prices, which have put a strain on patients, providers and taxpayers," said Ms. Thompson. "We also applaud the administration's commitment to addressing the opioid epidemic and expanding access to behavioral health services. The administration's expansion of the Children's Health Insurance Program and promise to fund Medicaid expansion in states that have not yet done so are welcome news."
Federation of American Hospitals President and CEO Charles "Chip" Kahn said the budget proposal "misses the mark." He said the budget lifts the Medicare sequestration "but nullifies any benefit by replacing it with warmed over cuts that would threaten patient access to hospital care for low income Americans and seniors."
American Health Care Association Senior Vice President of Finance Policy and Legal Affairs Mike Cheek targeted proposed Medicare payment cuts for post-acute care providers. "AHCA appreciates the administration's interest in modernizing Medicare and Medicaid with the goals of improving quality and efficiency. However, the post-acute care bundled payment proposal in this year's budget appears to be identical to previous legislative budget proposals," said Mr. Cheek. "This bundling proposal is merely a rate cut, not a meaningful reform of our payment and delivery system."
Washington, D.C.-based consulting firm Avalere Health Vice President Elizabeth Carpenter commented on the budget proposal as a whole. "While major federal legislative changes are unlikely leading up to the election, the administration will likely pursue policy changes that can be implemented without Congress to secure its legacy on priority issues," she said. "In addition, the president's budget serves as a potential starting point if a Democrat wins the 2016 presidential election."
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