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Senate Committee to Vote on Health Bill Next Week

The Senate Finance Committee this week completed its grueling review of nearly 600 amendments to its health reform legislation. Its leaders hope to vote on the complete bill next week.

During its deliberations this week, the committee rejected two separate proposals to include a public health plan option. It also exempted 2 million more people from the individual mandate based on economic hardship, and reduced penalties for failing to comply with the mandate.

Thanks to the work of Sen. John Kerry and his staff, the committee also favorably modified a proposal that would have penalized patients and physicians in high-cost Medicare states like Massachusetts. The current version of the bill sends more Medicare funds to low-spending states, but doesn’t do so at the expense of high-spending states, as the original bill would have done. The bill also calls for a comprehensive study of regional practice expenses that takes into account office rents, staff wages, and other costs that are out of the physician’s control - which the original bill failed to do.

On the negative side for Massachusetts physicians, the bill still includes a seriously flawed approach to public reporting of individual physician performance, as well as a provision to create physician payment penalties based on episode groupers, the flawed methodology that is the foundation of the unfair physician tiering program of the Massachusetts Group Insurance Commission.

Unfortunately, the bill also keeps the flawed Medicare physician payment formula intact. The proposed Independent Medicare Advisory Commission survived the committee markup, too. The MMS wrote the Senate Finance Committee last week with our strong criticisms of these and other provisions.

Following the committee’s final vote, Senate Majority Leader Harry M. Reid will reconcile this bill with the measure developed by the Health Education and Labor and Pensions Committee, which was chaired by the late Sen. Edward Kennedy. The merged measure will then go to the Senate floor for debate and a vote.

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