House passes FY01 budget resolution to strike 15% reduction

By MATTHEW HAY

HHBR Washington Correspondent

The FY01 budget resolution passed by the U.S. House of Representatives late last week includes a "sense of Congress" resolution that Congress and the White House work together to avoid implementation of the 15% reduction in Medicare home health outlays still scheduled to be implemented in October 2001.

Privately, home care lobbyists agree that in the wake of recent Congressional Budget Office (CBO) estimates that Medicare home health outlays plunged almost 45% between FY97 and FY99, the tide in Congress has turned sharply against the additional reduction. "We are getting positive feedback from Congress about eliminating the additional 15% reduction," reported one lobbyist. "Certainly, we got a positive sense from Congress in the sense of Congress’ resolution."

House Budget Committee Chair Representative John Kasich (R-OH) last week backed off his effort to press for the elimination of the 15% cut with House Ways and Means Health Subcommittee Chairman Rep Bill Thomas (R-CA).

"The Budget Committee did not want to step on Ways and Means’ toes when it came down to policy," said a home care lobbyist. "They also wanted to keep the $40 billion for Medicare reform available and not tied to any particular provision, such as eliminating the 15% reduction."

Rep. Bob Weygand’s (D-RI) amendment to include $7.2 billion in the Medicare budget to scratch the 15% reduction was defeated along party lines a week earlier, prompting Kasich to vow to take up the issue with Thomas.

Meanwhile, the National Association for Home Care (Washington) is working to round up support for a Senate bill that would strike the 15% reduction.