ASNC Urges Congress to Avoid Medicare Budget Cuts
ASNC joined many medical societies who signed letters to the House and Senate urging them to craft a legislative solution to avoid budget cuts that will negatively impact the economy and the healthcare system. The required 2 percent cuts to Medicare under the Budget Control Act (BCA) would result in the loss of more than 700,000 jobs in the healthcare sector by 2021, according to a recent report from the American Hospital Association, the American Medical Association, and the American Nurses Association. The report forecasts the loss of 496,000 jobs in 2013 alone.
The BCA calls for the implementation of the Medicare cuts on January 2, 2013. According to the Congressional Budget Office (CBO), this 2 percent reduction equals $11 billion in cuts to providers, Medicare Advantage plans, and Part D plans. Reductions in payments to providers would come on top of savings from the Affordable Care Act, potentially affecting access and quality of care, and resulting in providers shifting costs to other health insurers or otherwise changing the mix of services they provide.
Lawmakers hope the White House report detailing the exact nature of the budget cuts will spur Congress to reach an agreement to avert the cuts.
