Hidden Costs of Health Reform

January 13, 2010

Patients to bear additional costs.

According to an article in Forbes as cited by the January 13, 2010 NAHU Newswire, the expansion of Medicare and the rumored increases for subsidies to purchase health insurance could result in an additional $210 Billion in costs to patients over ten years. This estimate puts at risk the budget neutrality of the bill. A CMS memo concerning Medicaid funding reads: "Reduction in Medicare payment updates to Part A providers, based on economy-wide productivity gains, are unlikely to be sustainable on a permanent annual basis." However, "Part A cuts in the Senate bill assume these productivity gains, so in effect, the Office of the Actuary is saying that the cuts are likely to be reduced by Congress down the road."

Senator Levin of Michigan is now being criticized over a deal to exempt BCBS of Michigan from paying the new health insurance premium tax written into the Senate version of the bill.

There are many articles in the January 13, 2010 NAHU Newswire that are of significant interest:

• Groups make final push to influence health reform.
• Obama reportedly favors national insurance exchange over state alternative.
• Liberals, unions criticize Obama for backing "Cadillac plan" tax.
• House employer mandate not expected to be in final health reform bill.
• Final healthcare bill may require coverage for mammograms beginning at age 40.
• Citing "a serious problem," Rep. Rangel does not expect final deal until next month.

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