NELSON: HEALTH CARE FOR SENIORS JEOPARDIZED

June 26, 2008 - Nebraska's Senator Ben Nelson expressed frustration after the Senate failed to pass legislation today protecting health care for seniors and Medicare-supported health services in rural areas, including Nebraska.

The Senate fell two votes short of approving the Medicare Improvements for Patients and Providers Act. It would have averted cuts in Medicare reimbursements to doctors that go into effect next week and may force doctors to stop accepting some Medicare patients.

"I am disappointed that the Senate was blocked from preventing the looming Medicare cuts," said Senator Nelson, who voted for the bill. "We need to fix this issue once and for all, because our state’s physicians simply want to practice medicine and serve Nebraska seniors."

Beginning July 1, 2008, Medicare payments to doctors are scheduled to be cut by 10.6%. The cut would mean $70 million in fewer Medicare reimbursements over the ensuing 18-month period in Nebraska alone.

"Nebraska's physicians simply cannot afford additional Medicare cuts as the cost of providing care continues to rise," said Nelson.

Additionally, the bill included a Nelson measure that overturns a 2003 Centers for Medicare & Medicaid Services (CMS) regulation that prohibits critical access hospitals (CAHs) from being reimbursed at-cost for laboratory services unless patients are "physically present in a critical access hospital" when laboratory specimens are collected. Many CAHs are willing to provide laboratory services in alternative care sites so that seniors are not forced to travel unnecessarily; however, the elimination of cost-based reimbursements has made it prohibitive for these hospitals to continue offering off-site laboratory testing.

"When our Nebraska hospitals are willing to administer these tests at nursing homes and health clinics, it makes no sense to make seniors travel great distances unnecessarily," said Nelson. "This bill established common-sense health policy in place of an access burden which disadvantaged rural Nebraskans just because of where they lived."

Sixty-five rural hospitals in Nebraska face hurdles in providing care because of this rule, which reduces lab fees for CAHs serving beneficiaries in rural health clinics (RHCs), nursing homes, as well as home-health settings. The Nebraska Hospital Association estimates that this CMS regulation costs Nebraska's CAHs' $2.1 million a year.

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	Press Release	June 26, 2008
NELSON: HEALTH CARE FOR SENIORS JEOPARDIZED June 26, 2008 - Nebraska's Senator Ben Nelson expressed frustration after the Senate failed to pass legislation today protecting health care for seniors and Medicare-supported health services in rural areas, including Nebraska. The Senate fell two votes short of approving the Medicare Improvements for Patients and Providers Act. It would have averted cuts in Medicare reimbursements to doctors that go into effect next week and may force doctors to stop accepting some Medicare patients. "I am disappointed that the Senate was blocked from preventing the looming Medicare cuts," said Senator Nelson, who voted for the bill. "We need to fix this issue once and for all, because our state’s physicians simply want to practice medicine and serve Nebraska seniors." Beginning July 1, 2008, Medicare payments to doctors are scheduled to be cut by 10.6%. The cut would mean $70 million in fewer Medicare reimbursements over the ensuing 18-month period in Nebraska alone. "Nebraska's physicians simply cannot afford additional Medicare cuts as the cost of providing care continues to rise," said Nelson. Additionally, the bill included a Nelson measure that overturns a 2003 Centers for Medicare & Medicaid Services (CMS) regulation that prohibits critical access hospitals (CAHs) from being reimbursed at-cost for laboratory services unless patients are "physically present in a critical access hospital" when laboratory specimens are collected. Many CAHs are willing to provide laboratory services in alternative care sites so that seniors are not forced to travel unnecessarily; however, the elimination of cost-based reimbursements has made it prohibitive for these hospitals to continue offering off-site laboratory testing. "When our Nebraska hospitals are willing to administer these tests at nursing homes and health clinics, it makes no sense to make seniors travel great distances unnecessarily," said Nelson. "This bill established common-sense health policy in place of an access burden which disadvantaged rural Nebraskans just because of where they lived." Sixty-five rural hospitals in Nebraska face hurdles in providing care because of this rule, which reduces lab fees for CAHs serving beneficiaries in rural health clinics (RHCs), nursing homes, as well as home-health settings. The Nebraska Hospital Association estimates that this CMS regulation costs Nebraska's CAHs' $2.1 million a year. ###