A debt deal that promises at least $2.1 trillion in savings over the next 10 years has been signed into law by President Obama soon after the Senate approved it with a 74-26 vote, according to a CNN report.
The debt deal's key provisions allows the government's borrowing power to be raised by $2.1 trillion-$2.4 trillion in two stages. Meanwhile, more than $900 billion is spending cuts would be enacting over the next 10 years, and a special Congressional committee would be charged with finding another $1.2 trillion in savings by the end of the year.
If the committee fails to recommend the savings by the end of this year, as much as $1.2 trillion in automatic cuts will be enacted, equally affecting defense and domestic programs, including Medicare payments to healthcare providers. Payment cuts to hospitals, physicians and other Medicare providers would be limited to 2 percent.
As part of the deal, Medicaid and Social Security would be exempt from any cuts.
The debt deal, which threatens Medicare payments, has caused the healthcare market to rattle in the last few days, according to a Bloomberg report. Hospital companies' index fell 6.1 percent, compared to a 1 percent drop in Standard & Poor's 500 index. HCA, based in Nashville, Tenn., fell 6.5 percent to $24.94. Insurers have also dropped in trading, with WellPoint falling 3.1 percent to $65.44.
Hospital groups, including the American Hospital Association and the Federation of American Hospitals, have voiced their opposition to the possible Medicare cuts. Though the cuts would be limited to a 2 percent pay cut to providers, leaders across the industry say the cuts would inevitably affect access to healthcare.
"Reducing critical Medicare payments to community hospitals will affect the ability of caregivers to ensure access to the timely care beneficiaries deserve and expect," said FAH President and CEO Chip Kahn in a statement on the debt deal.
AHA President and CEO Rich Umbdenstock shared similar sentiments. "Funding reductions for hospital services translate into decreased access for our nation's seniors," Mr. Umbdenstock said in a statement. "That's why the total Medicare program — including caregivers — should be exempt from 'sequestration.' Cuts to Medicare funding for hospital care could overload emergency rooms, shut down trauma units and reduce patient access to the latest treatments."
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The debt deal's key provisions allows the government's borrowing power to be raised by $2.1 trillion-$2.4 trillion in two stages. Meanwhile, more than $900 billion is spending cuts would be enacting over the next 10 years, and a special Congressional committee would be charged with finding another $1.2 trillion in savings by the end of the year.
If the committee fails to recommend the savings by the end of this year, as much as $1.2 trillion in automatic cuts will be enacted, equally affecting defense and domestic programs, including Medicare payments to healthcare providers. Payment cuts to hospitals, physicians and other Medicare providers would be limited to 2 percent.
As part of the deal, Medicaid and Social Security would be exempt from any cuts.
The debt deal, which threatens Medicare payments, has caused the healthcare market to rattle in the last few days, according to a Bloomberg report. Hospital companies' index fell 6.1 percent, compared to a 1 percent drop in Standard & Poor's 500 index. HCA, based in Nashville, Tenn., fell 6.5 percent to $24.94. Insurers have also dropped in trading, with WellPoint falling 3.1 percent to $65.44.
Hospital groups, including the American Hospital Association and the Federation of American Hospitals, have voiced their opposition to the possible Medicare cuts. Though the cuts would be limited to a 2 percent pay cut to providers, leaders across the industry say the cuts would inevitably affect access to healthcare.
"Reducing critical Medicare payments to community hospitals will affect the ability of caregivers to ensure access to the timely care beneficiaries deserve and expect," said FAH President and CEO Chip Kahn in a statement on the debt deal.
AHA President and CEO Rich Umbdenstock shared similar sentiments. "Funding reductions for hospital services translate into decreased access for our nation's seniors," Mr. Umbdenstock said in a statement. "That's why the total Medicare program — including caregivers — should be exempt from 'sequestration.' Cuts to Medicare funding for hospital care could overload emergency rooms, shut down trauma units and reduce patient access to the latest treatments."
Related Articles on Proposed Debt Deals:
Congressional Leaders Reach Debt Deal, Medicare Providers Face Possible 2% CutMore Than 200 Hospitals Leaders Visit Capitol Hill Demanding No More Cuts
Leading Democrats Say No to Sens. Lieberman, Coburn's Proposed Medicare Plan