Health Advisory: Recently Passed House and Senate Medicare Reform Bills Would Significantly Affect Health Care Providers
7/25/2003
On June 27, 2003, the House and Senate passed different versions of Medicare legislation, either of which would implement the greatest changes to the Medicare program since its creation in 1965. The bills would set aside slightly more than $400 billion over the next decade to help Medicare beneficiaries cover the cost of prescription drugs. The Senate bill (S. 1) was passed by a wide margin bipartisan vote. The House narrowly approved its version (H.R. 1) by a margin of one vote. The House and Senate recently began the conference process that, if successful, will lead to a Medicare prescription drug bill that Congress will send to President Bush, most likely in the fall.
This issues of the Health Advisory describes how the changes proposed by the bills would impact various health industries constituents:
- Pharmaceutical Manufacturers and Pharmacies
- Pharmacy Benefits Managers (PBMs)
- Physicians and Hospitals
- Home Health Providers
- Laboratories
- DME and Orthotic Suppliers
Also discussed is the potential side effect of increased fraud and abuse enforcement.
