Healthcare Reform Meets Standstill on Medicare Issue

December 14, 2009 RSS Feed Print
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By Peter Roff, Thomas Jefferson Street blog

Every time Harry Reid manages to get a step ahead on healthcare reform the members of his caucus force him to take two steps back. Last week's announcement that a deal had been struck—whatever that meant, since Reid would not make the details public—was accompanied by Nebraska Sen. Ben Nelson and Connecticut Sen. Joe Lieberman telling CBS' Bob Schieffer they couldn't support the bill, at least not in its present form.

These objections, in and of themselves, are apparently enough to stop healthcare reform cold, especially if all 40 Republican senators remain united in their opposition to the Reid approach. In fact, the calculations are growing much more complicated with each hour that passes.

Reid must now contend as well with growing unrest on his left flank. A group of Senate liberals, led by North Dakota's Byron Dorgan and Minnesota's Al Franken wrote last Friday to the majority leader about his proposed "compromise," expressing their concerns that the rumored Medicare buy-in program for Americans aged 55-64 Reid wants to incorporate into his healthcare bill would fail to address "inequities in the current Medicare reimbursement rates."

"Our states consistently lag behind other states on Medicare reimbursement and per capita spending," the 12 Democrats who signed the letter wrote. "While there are provisions in the Senate bill to eventually adjust the geographic disparities in Medicare, possible improvements to the funding formula, if they occur, will be years away," they said, adding, "the current Medicare payment structure penalizes those who provide efficient care, while rewarding those who order unnecessary tests and services."

In short, having seen Reid buy Louisiana Sen. Mary Landrieu's vote with $100 million, these 12 Democrats are asking for their fair share. According to Phil Kerpen, vice president for policy at the pro-free market Americans for Prosperity, the letter is a sign that senators from rural states are concerned that expanding Medicare without increasing reimbursement rates will drive more and more doctors into retirement.

"As more and more of their patients become Medicare patients and Medicare pays far below market rates," Kerpen says, "at some point it becomes impossible to shift costs to patients with private insurance," which would have the effect of turning large areas of rural states into healthcare deserts where no providers would be available.

Allowing that such an outcome would be a "political and public policy disaster" for the senators who let it happen, Kerpen says the only way to avoid it if a buy-in is allowed would be to boost Medicare reimbursement rates. And that, he says, "would obliterate the mirage of cost-containment in Reid's bill and expose every American to trillions of dollars in higher spending and debt." Which, no matter how you slice it, isn't exactly progress.

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healthcare reform

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What a pompous ass Franken is for denying Joe one more minute to extend hios remarks in the senate today. Whay a pig, but it's no big surprise.

allen of MS 8:20PM December 18, 2009

How can Senators continue to ignore the polls and the voice of their constituents by continuing to support (vote for) a bill which we don't want??? They think they know better and apparently refuse to listen!!

Bernie Valentine of TN 12:23PM December 15, 2009

It is sickening to watch the circus of senators forget the best interest of the American and act time and time against such interest.

Holding the development a best for the nation health plan hostage to the special interest of one or a few senators will surely affect my vote and everyone I can call night after night for weeks before the 2010 election to get these selfish greed oriented people out of office regardless of the state they represent -- especially Liberman who has no integerty what so ever as his filp flops continually shows.

Hilton Bonniwell of FL 9:24AM December 15, 2009

Peter Roff

Peter Roff

Peter Roff is a contributing editor at U.S. News & World Report. Formerly a senior political writer for United Press International, he’s now affiliated with several public policy organizations including Let Freedom Ring, and Frontiers of Freedom. His writing has appeared in National Review, Fox News’ opinion section, The Daily Caller, Politico and elsewhere. Follow him on Twitter @PeterRoff.

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