Medicare Fee-for-Service Modifications and Medicaid Provisions of H.R. 1 as Enacted Page: 2 of 112
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Medicare Fee-for-Service Modifications and Medicaid
Provisions of H.R. 1 as Enacted
Summary
On November 22, the House of Representatives voted 220 to 215 to approve
the conference report on H.R. 1, the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003. The Senate, on November 24, voted 54 to 44 to approve
the conference report. Earlier, the conferees of the Medicare prescription drug and
modernization legislation announced an agreement on November 16 and the
legislative text was released November 20. The legislative language can be
downloaded from the House Committee on Ways and Means website at:
[http://waysandmeans.house.gov]. The bill was signed into law by the President on
December 8, 2003.
As well as establishing a prescription drug benefit for Medicare beneficiaries,
the legislation contains provisions that involving significant payment increases,
payment reductions, an expansion of covered benefits, new demonstration projects
and new beneficiary cost-sharing provisions for the traditional Medicare fee-for-
service (FFS) program. The bill includes a measure that would require congressional
consideration of legislation if general revenue funding for the entire Medicare
program exceeds 45%. Provisions affecting the State Childrens' Health Insurance
Program (SCHIP) and Medicaid programs are included in the legislation as well.
Earlier this year, under Congress' FY2004 budget resolution, $400 billion was
reserved for Medicare modernization, creation of a prescription drug benefit, and, in
the Senate, to promote geographic equity payment. The Congressional Budget Office
(CBO) has estimated that the legislation for H.R. 1 would increase direct (or
mandatory) spending by $394.3 billion from FY2004 through FY2013. Prescription
drug spending is estimated at $409.8 billion over the 10-year period and Medicare
Advantage spending at $14.2 billion. Overall, the fee-for-service provisions which
change traditional Medicare are estimated to save $21.5 billion over the 10-year
period and adjusting the Part B premium to beneficiaries' income is estimated to save
$13.3 billion over the period. Some fee-for-service provisions will increase spending
over this 10-year period including the provisions affecting hospitals and physician.
Other fee-for-service provisions are projected to save money over the period
including those affecting durable medical equipment, clinical laboratories and home
health agencies. The CBO estimate is available on the CBO website at
[ftp://ftp.cbo.gov/48xx/doc4808/11-20-MedicareLetter.pdfl.
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Medicare Fee-for-Service Modifications and Medicaid Provisions of H.R. 1 as Enacted, report, December 8, 2003; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc807197/m1/2/: accessed May 4, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.