The Health Care Cuts To Offset ‘Doc Fix’ In Payroll Deal

Negotiators on the payroll tax cut package are mulling a range of cuts to Medicare providers and some reductions to Affordable Care Act spending to override the reimbursement cuts to Medicare doctors set to take effect March 1.

The deal isn’t finalized yet but negotiators struck an accord on the broad parameters Tuesday night. The following are the proposed health care cuts in the mix, according to multiple sources familiar with the discussions.

–Cuts to the Affordable Care Act’s prevention fund totaling up to $5 billion

–Cuts to Medicare bad debt payments for hospitals and some nursing homes

–Cuts in Medicaid reimbursements to hospitals with a high percentage of low-income patients

–Coding changes to Medicare reimbursements for clinical laboratories and home health services

The policies have all been floated in earlier deficit-reduction efforts, although House Dems aren’t happy about the cuts to the health law.

ABOUT THE AUTHOR

Sahil Kapur is TPM's senior congressional reporter and Supreme Court correspondent. His articles have been published in the Huffington Post, The Guardian and The New Republic. Email him at sahil@talkingpointsmemo.com and follow him on Twitter at @sahilkapur.
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