RELEASE: CAP Opposes Unnecessary Cuts to Benefits, Proposes Modernizing the Health Care System
Contact: Katie Peters
Washington D.C. – Today, as sources suggest that Democrats on the Super Committee are proposing $400 billion in cuts to Medicare—$200 billion in cuts to benefits, and $200 billion in cuts to providers, the Center for American Progress released a package of reforms to modernize the health care payment and delivery system.
Together, the CAP proposals have the potential to reduce the federal deficit by $100 billion or more in a decade, as scored by CBO. Many experts believe that the actual savings to the federal government would be orders of magnitude greater. And of course, the total savings to the health care system would be even greater.
These reforms are a win-win: they will reduce costs and at the same time improve the quality of care and the efficiency of the health care system. The proposals include:
- Immediately expand a Medicare program that bundles payments together for certain procedures nationwide. Then, completely replace fee-for-service with bundled payments for all procedures and primary care by 2016.
- Immediately implement competitive bidding for durable medical equipment, prosthetics, orthotics, and supplies nationwide, and expand the program to include laboratory tests.
- Require electronic eligibility, claims processing, and payment, as well as centralized physician credentialing.
- Do not pay extra for technologies that are more expensive but no more effective than other available technologies.
“Unnecessary cuts to benefits — as the Super Committee is reportedly considering — is a blunt method of reducing the federal deficit," said Topher Spiro, Managing Director for Health Policy at the Center for American Progress. "Instead, the Super Committee should seize the opportunity to modernize the health care system—and reduce total health care costs while improving the quality of care.”
CLICK HERE to read the package of cost saving proposals
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