The House Budget Committee voted 22-17 along party lines on March 22 to approve a fiscal year 2008 budget resolution that includes deficit-neutral “reserve funds” for the State Children’s Health Insurance Program and Medicare improvements. The SCHIP reserve fund provides for up to $50 billion through 2012, while the Medicare reserve fund provides for an unspecified adjustment.
The reserve funds are “placeholders” that allow committee allocations to be adjusted, for example, if legislation is passed to expand SCHIP or increase the Medicare reimbursement rate for physicians. However, the legislation must be “deficit neutral,” which means hospitals could be at risk for cuts if lawmakers look to offset new funding for Medicare or SCHIP.
The Senate continued to debate proposed amendments to its budget resolution, which includes an SCHIP reserve fund of up to $50 billion. Of that, $15 billion would come from Medicare, although the resolution does not specify which Medicare programs would be cut.
The House resolution could go to the floor next week.
[ via AHA News Now ]
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