Kanjorski Successfully Convinced House Leadership to Maintain Higher Medicare Reimbursements for Hospitals 

WASHINGTON - Congressman Paul E. Kanjorski (PA-11) successfully advocated for higher Medicare reimbursements for 11 area hospitals in H.R. 6331, the Medicare Improvements for Patients and Providers Act of 2008, which passed in the House today by a vote of 355-59.  This bill extends Section 508 of the Medicare Modernization Act until September 30, 2009, ensuring that hospitals receive the fair Medicare reimbursements that they deserve.  As a result, 11 hospitals in Northeastern Pennsylvania would continue to receive these Medicare reimbursements totaling over $42 million, including 8 hospitals in Pennsylvania's 11^th Congressional District totaling almost $34 million.  If H.R. 6331 is enacted, Congressman Kanjorski would have helped secure almost $200 million in more accurate Medicare reimbursements for area hospitals over about five years.

On April 23, Congressman Kanjorski led 30 other Members in sending a letter to Congressional leaders requesting that they extend Section 508.  Without an extension, on September 30, these 11 local hospitals would stop receiving accurate Medicare reimbursements.

"We must ensure that hospitals receive the fair Medicare reimbursements that they deserve, otherwise hospitals will be unable to afford to treat all the Medicare patients that need care," said Congressman Kanjorski.  "This is not acceptable.  As I have in the past, I am working in Congress to protect the rights of our seniors and hospitals.  I want to make sure that our seniors can access the care that they need, and that our doctors can afford to treat them.  For 11 hospitals in Northeastern Pennsylvania, this legislation will ensure that they receive more accurate Medicare reimbursements helping seniors, their families, doctors, and other hospital employees."

"Extending Section 508 is vitally important to Moses Taylor and ten other Northeastern Pennsylvania hospitals, representing in total about $42 million needed to provide services to our community," said Andy Anderson, CEO of Moses Taylor Hospital in Scranton.  "Congressman Kanjorski and our other legislators have been extremely effective in assisting us in this matter, and continue to work diligently on our behalf.  We are very appreciative of their ongoing commitment."

In our current healthcare system, Medicare reimburses hospitals for patients covered by the program.  Unfortunately, the amount of reimbursement that hospitals receive does not fully reflect the relative costs of wages and salaries for workers at the 11 hospitals in Northeastern Pennsylvania.  As a result, these hospitals fail to receive the Medicare reimbursements that they deserve.  Section 508 aims to deal with the shortcomings in calculating fair Medicare reimbursements.  It allows these 11 hospitals to qualify for the higher reimbursements that nearby areas receive, which would increase their annual Medicare reimbursements by millions of dollars. 

On April 23, Congressman Kanjorski led 30 other Members in sending a letter to Congressmen Charles Rangel (D-NY) and Jim McCrery (R-LA), Chairman and Ranking Member of the House Committee on Ways and Means, respectively; and Congressmen John Dingell (D-MI) and Joe Barton (R-TX), Chairman and Ranking Member of the House Committee on Energy and Commerce, respectively.  In the letter, the Members, which included Congressman Christopher P. Carney (D-PA), requested an extension of Section 508.  As a result, this action was included in today's legislation. 

Senators Arlen Specter (R-PA) and Bob Casey (D-PA) have continuously helped extend the more accurate Medicare reimbursements in the Senate.

H.R. 6331 would also eliminate the pending 10.6 percent cut in Medicare payments to doctors that is set to take place on July 1.  Instead, it provides a 1.1 percent increase in Medicare physician payments through 2009.  

The bill would also postpone the Durable Medical Equipment (DME) competitive bidding program for another 18 months.  This program, which was implemented by the Centers for Medicare and Medicaid Services, unfairly discriminates against small local providers of durable medical equipment, such as many companies that have served senior citizens in Northeastern Pennsylvania so well.  Congressman Kanjorski has continuously supported delaying this program. 

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Editor's Note:  Click here to view a list of the 11 hospitals in Northeastern Pennsylvania affected by the Section 508 extension, which also identifies the reimbursements they will receive until September 30, 2009.  Click here to view a copy of the letter Congressman Kanjorski and 30 other Members sent to House leaders on April 23.