OVERNIGHT HEALTH: Is Medicare compromise DOA?

Medicaid battle ratchets up: Religious groups joined the fight against proposed Medicaid cuts on Tuesday as advocates for the program launched a new ad campaign in its defense. After fighting on several fronts for the past few weeks, the debate is coalescing now around a plan to “blend” the various formulas that determine federal funding. 

President Obama proposed the change in April. Now that he’s taken the reins of negotiations on the debt ceiling, the idea is getting particular attention. Healthwatch’s Julian Pecquet has the story.

ACO woes: Proposed rules on accountable care organizations just can’t catch a break. The latest objections came from Reps. Jim Gerlach (R-Pa.) and Mike Thompson (D-Calif.), who say the proposal could lead doctors to skip expensive tests. ACOs are an effort to integrate healthcare services and reward doctors for quality, not quantity. So when an ACO produces savings, they’ll be split between Medicare and the ACO.

{mosads}“These incentives could have the unintended potential to lead to stinting on care,” Gerlach and Thompson said. “This could include denial of needed specialty referrals or higher cost tests and interventions that are appropriate for the patient.”

The lawmakers’ letter can be here.

Nursing cuts: More than 150 members of Congress have signed on to a letter urging the Centers for Medicare and Medicaid Services to abandon proposed cuts to skilled nursing facilities. CMS said in April that it had paid nursing homes some $4 billion more than expected because of a new classification system, and was considering a major cut in future payments to make up for the error.

Lawmakers questioned the accuracy of CMS’s estimates in a letter to the agency. Even if the math turns out to be correct, they said, the money should be recouped gradually.

A copy of the letter is here, and the American Health Care Association’s formal comments on the CMS proposal can be found here.

Texas, messing with Washington: The state legislature in Texas is the sixth state to give final approval to the healthcare “compact,” which would hand over all federal healthcare money to the states and eliminate federal programs in those states. Interstate compacts require approval from Congress and the president, so don’t hold your breath on the healthcare compact happening. But it’s one more way for conservative states to register their disapproval with healthcare reform and federal health spending in general.

Tax targeted: For all the talk about whether Congress will
accept new revenues to offset potential healthcare cuts, small
businesses are still pushing for the repeal of a new tax established in
healthcare reform. The National Federation of Independent Business
praised Rep. Heath Shuler (D-N.C.) on Tuesday for co-sponsoring a bill to
repeal a new tax on health insurance policies.

NFIB says the tax will cost small businesses $87 billion in the first 10 years.

Undercover investigation: Live Action plans to release a new undercover video that purports to contradict Planned Parenthood’s claims that defunding abortion providers will cause Medicaid beneficiaries to lose access to healthcare. Simultaneously, Live Action is launching a petition in support of the Indiana legislature’s decision to defund Planned Parenthood.

Wednesday’s agenda
Healthcare and political heavy-hitters from both sides of the aisle will square off during a discussion about healthcare reform implementation at the Biotechnology Industry Organization’s international conference. On the left: former Sen. Tom Daschle (S.D.) and former Democratic National Committee Chairman Howard Dean (Vt.). On the right: consultant Karl Rove and Sen. John Barrasso (R-Wyo.).

The American Enterprise Institute will hold a forum on the importance of innovation in vaccine development.

And Rep. Diana DeGette (D-Colo.) is set to unveil a stem-cell bill at a Denver rehabilitation clinic.

Recent lobbying registrations
NVG / Nemours (national pediatric health system)

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National Journal says the controversy over Avastin typifies the national debate over healthcare.

Spine experts are attacking their colleagues’ research in favor of a bone-growth device, The New York Times reports.

ThinkProgress’ Igor Volsky notes that two of former President George W. Bush’s health secretaries stand to profit from states establishing health insurance exchanges.

Correction: The 10 a.m. Senate Health committee markup of the Children’s Hospital Graduate Medical Education Support Reauthorization Act of 2011 and the Combating Autism Reauthorization Act has been postponed until July 13.

Comments / complaints / suggestions? Please let us know.

Julian Pecquet / 202- 628-8527 / jpecquet@digital-release.thehill.com

Sam Baker / 202-628-8351 / sbaker@digital-release.thehill.com

Follow us on Twitter: @hillhealthwatch