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Preserving
the Safety Net
NAPH endorses initiatives that will sustain the
health care safety net, including proposals to:
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NAPH strongly supports legislative efforts to
protect Medicaid DSH allotments against further
reductions. Two bills in the House (H.R. 3698 and H.R.
3710) would eliminate reductions in state DSH allotments
scheduled for FY 2001 and FY 2002. H.R. 3698 would
additionally allow CPI increases beginning in 2001. Two
bills in the Senate (S. 2299 and S. 2308) would also
eliminate the planned reductions and allow CPI increases
beginning in 2002. These bills would provide substantial
relief for distressed safety net hospitals, although
still allowing significant savings in the DSH program as
compared to pre-BBA spending.
Eliminate BBA-imposed reductions to the Medicaid DSH
program
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This program provides grants to local communities to
enhance collaboration among safety net hospitals,
clinics and other providers. It is intended to help
produce a more efficient and seamless health care system
for the uninsured. Legislation to authorize CAP, H.R.
4970, the “Community Access to Health Care Act of 2000,”
was introduced by Representative Gene Green (D-TX) in
July 2000. CAP authorization language is also included
in the House Family Care legislation (H.R. 4927).
Authorize and provide appropriations for the
Community Access Program (CAP)
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NAPH supports modifications to the Medicare program
that would reform outdated provider payment
methodologies and alleviate some of the unintended
consequences of the Balanced Budget Act of 1997. In
particular, we urge Congress to:
- Change the DSH formula to include the costs of
uncompensated care;
- Carve out DSH payments from Medicare managed care
rates to make payments directly to the hospitals that
provide the care;
- Freeze indirect medical education payments at
their current level;
- Increase the annual inpatient and outpatient
payment update amounts to help providers keep pace
with the rapidly growing costs of care;
- Create an all-payer trust fund for graduate
medical education that would broaden the base of
federal support for medical education.
Modernize Medicare Provider Reimbursement
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