Hospital trade groups tore into the House GOP's proposed budget resolution for FY 2012, focusing their ire on $155 billion in proposed Medicare cuts over the next 10 years.
Critics call the proposed changes "cuts," although House Budget Committee Chair Paul Ryan (R-Wis.), who introduced the proposal Tuesday, said it would slow down Medicare and Medicaid spending rather than cut funding.
The proposal, which was released Tuesday and may come to a vote in the GOP-led House next week, would transfer the Medicaid program into block grants for states, allowing them more freedom to use the funds. The Medicare program would be converted into making payments for Medicare beneficiaries' premiums with private insurers.
Rep. Ryan said his proposal would strengthen Medicare by reinvesting the savings from healthcare reform into the program instead of using it to expand coverage to more people. But AHA President and CEO Rich Umbdenstock told the Hill he disagreed with the Republican strategy.
In negotiations for the healthcare reform bill last year, hospitals agreed to $155 billion in Medicare cuts over a decade because reform promised to reduce the number of nonpaying patients, Mr. Umbdenstock said. If just the cuts stand, "it's straight off the hospitals' revenue [and] not something we think is feasible," he told the Hill.
However, hospital organizations reserved their harshest criticisms for Mr. Ryan's proposed cuts in Medicaid spending. Here is a sampling of their comments.
AHA. "Medicaid has already been dramatically cut as states struggle to balance their budgets. Further cuts of $771 billion over the next ten years would threaten this program, which is a lifeline to so many Americans," Mr. Umbdenstock said in a statement.
Federation of American Hospitals. "The combined effect of dropping the new coverage and maintaining the cuts threatens the care that communities depend on and will place harsh limits on the very health care providers who are frequently the most significant job creators in their local communities," said FAH President and CEO Chip Kahn.
Catholic Health Association. "The draconian cuts proposed in the budget resolution would simply shift the cost burden onto individual beneficiaries, health care providers and state governments," said Sr. Carol Keehan, DC, president and CEO of CHA. "While this may temporarily reduce the federal deficit, the long-term effects of this strategy will be to erode the safety net and jeopardize the health and economic security of millions of Americans."
National Association of Public Hospitals and Health Systems. "The Medicaid block grants included in the resolution do nothing to reduce health care costs – they merely shift the costs onto others and eliminate the federal guarantee of coverage," the statement said.
Read the Hill report on federal spending.
Read the AHA statement.
Read the Federation of American Hospitals statement.
Read the Catholic Health Association statement.
Read the National Association of Public Hospitals and Health Systems statement.
Read the full text of the House GOP Budget Resolution.
Read more coverage of the proposed GOP budget cuts for Medicaid and Medicare:
-GOP Proposal Would Fundamentally Change Medicare, Medicaid
-Proposed House GOP Budget Would Slow Medicare, Medicaid
Critics call the proposed changes "cuts," although House Budget Committee Chair Paul Ryan (R-Wis.), who introduced the proposal Tuesday, said it would slow down Medicare and Medicaid spending rather than cut funding.
The proposal, which was released Tuesday and may come to a vote in the GOP-led House next week, would transfer the Medicaid program into block grants for states, allowing them more freedom to use the funds. The Medicare program would be converted into making payments for Medicare beneficiaries' premiums with private insurers.
Rep. Ryan said his proposal would strengthen Medicare by reinvesting the savings from healthcare reform into the program instead of using it to expand coverage to more people. But AHA President and CEO Rich Umbdenstock told the Hill he disagreed with the Republican strategy.
In negotiations for the healthcare reform bill last year, hospitals agreed to $155 billion in Medicare cuts over a decade because reform promised to reduce the number of nonpaying patients, Mr. Umbdenstock said. If just the cuts stand, "it's straight off the hospitals' revenue [and] not something we think is feasible," he told the Hill.
However, hospital organizations reserved their harshest criticisms for Mr. Ryan's proposed cuts in Medicaid spending. Here is a sampling of their comments.
AHA. "Medicaid has already been dramatically cut as states struggle to balance their budgets. Further cuts of $771 billion over the next ten years would threaten this program, which is a lifeline to so many Americans," Mr. Umbdenstock said in a statement.
Federation of American Hospitals. "The combined effect of dropping the new coverage and maintaining the cuts threatens the care that communities depend on and will place harsh limits on the very health care providers who are frequently the most significant job creators in their local communities," said FAH President and CEO Chip Kahn.
Catholic Health Association. "The draconian cuts proposed in the budget resolution would simply shift the cost burden onto individual beneficiaries, health care providers and state governments," said Sr. Carol Keehan, DC, president and CEO of CHA. "While this may temporarily reduce the federal deficit, the long-term effects of this strategy will be to erode the safety net and jeopardize the health and economic security of millions of Americans."
National Association of Public Hospitals and Health Systems. "The Medicaid block grants included in the resolution do nothing to reduce health care costs – they merely shift the costs onto others and eliminate the federal guarantee of coverage," the statement said.
Read the Hill report on federal spending.
Read the AHA statement.
Read the Federation of American Hospitals statement.
Read the Catholic Health Association statement.
Read the National Association of Public Hospitals and Health Systems statement.
Read the full text of the House GOP Budget Resolution.
Read more coverage of the proposed GOP budget cuts for Medicaid and Medicare:
-GOP Proposal Would Fundamentally Change Medicare, Medicaid
-Proposed House GOP Budget Would Slow Medicare, Medicaid