Congress faces difficult choices and disagreements as it winds down for the year, but a bipartisan bill passed in the House Monday, helping to maintain medical care for seniors.
The legislation was only a small step toward solving a big Medicare problem. The House joined the Senate in voting to postpone a steep cut in fees for doctors treating Medicare patients ”“ but just through the end of this year. Unless further steps are taken, doctors will again face a pay cut of almost 25 percent for Medicare services after Jan. 1, 2011.
At least the problem is solved for the month of December. The stopgap measure will give congressional leaders time to consider the options for a long-term solution.
The problem arises from the unsustainable rise in medical costs. In an unsuccessful attempt to hold down Medicare spending, Congress years ago linked Medicare’s physician payments to a formula based on the growth of the U.S. economy.
This requirement has been waived annually in response to fears that many physicians would eventually stop treating Medicare patients. But a permanent solution is expensive. Allowing Medicare fees to continue to rise with medical inflation would have a 10-year cost of $330 billion, according to the Congressional Budget Office.
In the short term, Congress must find a way to keep Medicare on an even keel through next year. This will require more political bipartisanship, as well as budget cuts or tax increases to cover the rising cost of care.
In the long run, only comprehensive health care reform stands a chance of holding health care costs in check. Congress passed such a bill this session ”“ now the challenge is to make it work.
— Questions? Comments? Contact Managing Editor Nick Cowenhoven at nickc@journaltribune.com.
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