|Blumenauer and Members of Quality Care Coalition Announce Medicare Geographic Inequity agreement|
|Wednesday, 28 October 2009 05:29|
Congressman Earl Blumenauer (D-Ore) and other members of the Quality Care Coalition announced an agreement that will address Medicare geographic inequities as part of insurance reform. Blumenauer has been leading the charge to make sure that states providing high quality, efficient care are not penalized. This includes Portland, Oregon where – according to the latest figures – federal spending for a Medicare enrollee averages $7,000, while an enrollee in Miami, Florida averages $17,000.
Rep Blumenauer and members of the Quality Care Coalition unveil Health Care Agreement
“This is a huge victory for states like Oregon that provide high quality care at lower costs,” said Congressman Blumenauer. “I have been working for years to get the federal government to stop rewarding health care inefficiencies. These perverse incentives burden people in more efficient, low-cost regions such as Oregon, where we have had to subsidize expensive and unnecessary treatments in high cost regions. At a time when we are working to recover our economy and spur job growth, subsidizing other regions that overspend on care simply isn’t an option. This agreement and the recommendations that will be made by the Institute of Medicine are a significant step in improving care across the nation and reining in costs.”
More Detailed Info on the Studies and the House Agreement on Medicare Variation and Promotion of High Value Care
Geographic Variation Study
The Institute of Medicine will conduct a study to evaluate and make recommendations to improve the geographic adjustment factors in the Medicare reimbursement formulas which will be completed one year after enactment.
Revision of Medicare Payment System
The Secretary of HHS will implement a payment rate that takes into account this study that can be implemented immediately after the study’s completion.
High Value Study
The Institute of Medicine will also do a study and provide recommendations on changing the Medicare payment system to reward value and quality which will be completed by April, 15 2011.
Not later than 240 days after the report, the Secretary of HHS will submit to Congress an implementation plan based on the IOM studies.