The Senate has passed the Bipartisan Budget Act of 2013, a two-year plan that would extend sequestration cuts and delay a steep Medicare payment reduction for physicians, among other changes to healthcare provider reimbursements.
The legislation — originally introduced by Senate Budget Committee Chairman Patty Murray (D-Wash.) and House Budget Committee Chairman Paul Ryan (R-Wis.) — includes $28 billion in spending cuts over 10 years by requiring the president to extend sequestration cuts through 2022 and 2023, maintaining the reductions at the same percentage of budgetary resources that will be cut in 2021 in accordance with current law. The House passed the bill last week. The measure will now advance to President Barack Obama, who has expressed support for the measure.
The proposal would delay a 24 percent Medicare reimbursement reduction for physicians required by the program's sustainable growth rate and physicians a 0.5 percent payment update through March 2014, giving lawmakers extra time to repeal and replace the SGR. Additionally, the bill would delay Medicaid disproportionate share hospital payment reductions set to begin next year and last through 2022, shifting the cuts to 2016 through 2023. It also extends the
Overall, the budget plan would provide $63 billion in sequestration relief — split evenly between defense and nondefense programs — by increasing discretionary spending limits in fiscal years 2014 and 2015. In 2014, it would raise defense discretionary spending from $498.1 billion to $520.5 billion and increase nondefense discretionary spending from $469.4 billion to $491.8 billion. In fiscal year 2015, defense spending would go up from $512 billion to $521.3 billion, while nondefense funds would increase from $483.1 billion to $492.4 billion.
Lawmakers have yet to determine the specifics of how the sequestration relief funds will be spent. Association of American Medical Colleges President and CEO Darrell G. Kirch, MD, issued a statement urging Congress to restore funding to health professions training and to medical research supported by the National Institutes of Health. He also expressed disapproval of the sequestration extension.
"While the nation's medical schools and teaching hospitals are encouraged by the prospect of restoring funding for these vital health investments, we remain disappointed that this budget proposal leaves the sequestration cuts to Medicare in place, and extends them for two years," he said in the statement.
The Greater New York Hospital Association and the Federation of American Hospitals have also issued statements criticizing the budget deal for prolonging sequestration. FAH President Chip Kahn has told The Hill his group intends to lobby against the additional cuts next year.
More Articles on the Federal Budget:
Senate Votes to End Debate on Budget Bill Extending Sequester Cuts
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Congress Introduces Budget Deal Maintaining Sequestration, Medicare Cuts