Paying for Health Care Reform with Medicare/Medicaid Savings

Here in Asheville North Carolina, health insurance- Reducing hospital readmission rates and
reform is a huge issue as our local populationimproving post-hospital care. The idea here is that
consists largely of retirees, many of whom area combination of incentive payments and penalties
becoming increasingly concerned about the costwould lead to better care and fewer readmissions,
sustainability of their Medicare and their Northwhich would save approximately $25 billion over
Carolina health plans. As health care costs continue10 years.
to rise, reform is something the Obama- Expanding the Hospital Quality Improvement
Administration earnestly hopes to include in theProgram to improve quality of care for
2010 Fiscal Budget. President Obama has identifiedbeneficiaries. This would be done by tying a
savings which could constitute a reserve fund forportion of Medicare payments for acute in-patient
the proposed health care reform plan.hospital services to hospital performance on
Approximately half of the funding would comecertain measures of quality. As a result of this
from proposals to generate revenue, while theeffort, Medicare would save around $12 billion
rest would come from Medicare and Medicaidover 10 years.
savings.- Cutting waste, abuse and fraud. When it comes
Based on White House projections, the Medicareto care, patients need quality, not quantity.
savings proposals would reduce beneficiaryUnnecessary treatments are not only expensive,
premiums for physician and outpatient services bybut can also pose risks to patient health. To
about $33 billion over the next decade. As a resultprevent physicians from ordering unnecessary
of these proposals, beneficiaries would also see antreatment, the Administration proposes increasing
improvement in the quality of their Medicarescrutiny (through a pre-payment review process)
services. The reserve fund includes a host ofin high-risk areas or for those physicians who
Medicare/Medicaid savings proposals, some oforder an excessive amount of high-risk services.
which include:For residents of North Carolina, health insurance,
- Improving the accuracy of Medicare andMedicare and health care reform are no doubt
Medicaid payments. The Centers for Medicare andimportant topics. As citizens directly affected by
Medicaid Services (CMS) would have tothese potential changes in policy, it's important
strengthen their integrity efforts in order tothat you stay abreast of the facts, beware of
address flaws that have led to billions inmisinformation surrounding health care reform,
overpayments and fraud each year.and show your support for legislation that speaks
- Reducing Medicare overpayments to privateto your needs (which are probably not unlike
insurers would save taxpayers roughly $177 billionthose of many other Americans). If you are
over 10 years, as well as reduce Part Bsatisfied with your Asheville North Carolina health
premiums. This would be accomplished throughplans, rest assured in knowing that under Obama's
the establishment of a competitive system inplan, you would be able to keep your private
which payments are based on an average ofinsurance and continue seeing the doctors you
plans' bids submitted to Medicare.trust.