Bipartisan Policy Center Releases Health Care Cost Containment Plan April 19, 2013 Health Care Reform Accountable Care Organization, ACO, Bipartisan Policy Center, Bipartisan Rx, Health Care Cost Containment Initiative 0 On Thursday, the Bipartisan Policy Center released a health care cost containment plan that would reduce the federal deficit by about $560 billion over the next decade, including about $300 billion in Medicare savings. The report was compiled by former Democratic and Republican congressional lawmakers and health care experts, including former Senate Majority Leader Tom Daschle (D-S.D.), former Congressional Budget Office Director Alice Rivlin, and MIT economist Jonathan Gruber. The plan offers a variety of recommendations to change health care delivery and how it is financed, including the elimination of the sustainable growth rate formula at a cost of $138 billion. Further, health care providers in areas that have not received a rural exemption from HHS would not receive an increase in their fee-for-service payments. The fixed payments plan was proposed in an effort to drive providers into new "Medicare networks," which build upon the Affordable Care Act's accountable care organizations (ACOs). According to BPC staff, the proposal is expected to expand the 250 existing ACOs in order to enroll about 40% of all Medicare beneficiaries within the first 10 years. The networks would be offered as a third option for Medicare beneficiaries, alongside traditional fee-for-service and Medicare Advantage. The plans would offer enrollees lower premiums and cost-sharing, while providing financial incentives to providers, hospitals and other health care providers to better coordinate care. However, the plan would equalize office visit payments, regardless of the site of care, which would save about $8.7 billion over 10 years. In addition, the BPC's plan would combine deductibles for Medicare parts A and B into a single $500 annual deductible, with a $5,315 cap on beneficiary out-of-pocket cost sharing. Further, the report proposes expanding cost-sharing assistance to Medicare beneficiaries with annual incomes of up to 150% of the federal poverty level, or $17,235 for an individual. The report's authors say the recommendations have been well received by congressional lawmakers and White House staff. Source: California Healthline, April 19, 2013. Comments are closed.
