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Preserving the Safety Net

NAPH endorses initiatives that will sustain the health care safety net, including proposals to:

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

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)

NAPH supports modifications to the Medicare program that would reform outdated provider payment methodologies and alleviate some of the unintended consequences of the Balanced Budget Act of 1997.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