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Copyright 2000 Journal Sentinel Inc.  
Milwaukee Journal Sentinel

October 15, 2000 Sunday FINAL EDITION

SECTION: NEWS; Pg. 13A

LENGTH: 687 words

HEADLINE: Bill increases benefits for Medicare patients;
Cost of outpatient care for beneficiaries would be cut

BYLINE: ROBERT PEAR New York Times

BODY:
Washington -- Medicare recipients will receive several new benefits under legislation sailing through Congress with bipartisan support.

The bill improves coverage of mammography, Pap smears and pelvic examinations for women; expands coverage of colonoscopies to detect colon cancer and authorizes payment for tests for glaucoma. In addition, the bill promises to reduce the cost of outpatient care for beneficiaries, a goal long sought by AARP, formerly known as the American Association of Retired Persons.

The new benefits are included in a bill that also increases Medicare payments to health maintenance organizations, hospitals, nursing homes and home care agencies. Republicans said they had decided to provide new Medicare benefits for two reasons. First, they said, the benefits, especially coverage for preventive health services, can prolong the lives of older Americans. Second, they said, the benefits serve an important political purpose, showing that members of Congress care about older voters even as lawmakers respond to the pleas of lobbyists for the health care industry.

Overall, the legislation will cost $26 billion to $28 billion over five years. Health care providers will receive two-thirds of the money.

One of the most significant features of the bill is a provision limiting the amounts that can be charged to beneficiaries for outpatient care at hospitals. Because of a quirk in the Medicare law, patients in recent years have been forced to pay a rapidly growing share of the cost for outpatient services, like cataract surgery and hernia operations. Patients sometimes pay more than 60%.

Under the legislation, the patient's share of outpatient bills may not exceed 60% next year, 55% in 2002 and 2003, 50% in 2004, 45% in 2005 and 40% in 2006. The Congressional Budget Office estimated that these limits would save beneficiaries $1.8 billion in the next five years.

Under another provision of the bill, Medicare would cover colonoscopies for all beneficiaries. Under current law, it covers such procedures only for people who have a high risk of developing colon cancer, because of their family history or other factors.

Medicare has not covered routine screenings for glaucoma, but under the legislation, it would cover such examinations for people with a high risk of glaucoma, including people with a family history of the disease and people who have diabetes.

The legislation would also expand coverage of Pap tests, to help detect cervical cancer. In most cases, Medicare now pays for a Pap smear and a pelvic examination once every three years. Under the legislation, it would pay for the test and the examination every two years.

Under the bill, Medicare would, for the first time, cover " medical nutrition therapy services" for some patients. The benefit would become available next year to Medicare patients with diabetes or kidney disease. The government would study whether coverage should be extended to other groups.

Congress also has decided to increase payments for certain types of mammography that use new computer technology to help detect breast cancer in women with no symptoms. The payment for such a test, which now averages $84, could be increased by 50%.

Medicare pays for some organ transplants and for the drugs needed to prevent rejection, but coverage of the drugs is generally limited to 44 months. The bill would eliminate the time limit on coverage of the drugs.

Republicans have also agreed to increase payments to HMOs. The monthly payment on behalf of a Medicare beneficiary now ranges from a low of $402 in some rural areas to a high of $814 in parts of New York. The bill would establish a minimum payment of $525 a month for beneficiaries in any metropolitan area with a population of more than 250,000. In rural areas, the minimum payment would be raised to $475.

KEY PROVISION

Under legislation that has bipartisan support in Congress, a Medicare patient's share of outpatient care bills from hospitals may not exceed:

60% in 2001

55% in 2002 and 2003

50% in 2004

45% in 2005

40% in 2006

LOAD-DATE: October 15, 2000




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