President Obama Pulled into Debt Negotiations – NAPH Asking for Member Outreach - June 28, 2011
At the end of last week, the “Biden working group” came to an impasse in their budget negotiations over the issue of revenue (tax) increases. House and Senate Republicans have continually rejected Democratic efforts to include revenue increases as part of a compromise deficit reduction deal. Congressional leaders called upon President Obama to step in and mediate through this stalemate. President Obama has now met with Senate Majority Leader Harry Reid (D-NV), Senate Minority Leader Mitch McConnell (R-KY), and Speaker of the House John Boehner (R-OH) to find a compromise that would allow these debt negotiations to continue. Some Republicans have pushed for a balanced budget amendment while others have called for aggressive cuts to Medicare—both of which Democrats strongly oppose. Press reports indicate that President Obama and the Democrats may be open to higher Medicare cuts if Republicans will allow an increase of revenues in the final legislation.
On June 23, the Senate Finance Committee added to the conversation by convening a hearing on health care entitlements and the deficit. Discussion at this hearing centered on trying to find a compromise on the savings needed for debt reduction. Bruce Vladek, who ran the Medicare and Medicaid programs during the Clinton Administration, told the committee that more revenue was needed to aid the economy and address the financing challenges of Medicare and Medicaid, while Republican witnesses rejected that claim. Common ground was seen on the need to better coordinate care for dual eligibles—those who are eligible for both Medicare and Medicaid benefits—and the need to end the current fee-for-service system and replace it with a payment system that encouraged coordinated care.
The House is on recess this week, with the Senate recessing next week. NAPH is actively working with key members of Congress to discuss critical issues for the safety net. The association is coordinating a targeted campaign to engage Senate offices using key stakeholder outreach from several hospitals and will be sending a membership-wide Action Alert to hospital government relations staff on June 29. In addition, NAPH has coordinated with the hospital-based Coalition to Protect America’s Healthcare on a multi-million nationwide advertising campaign and the provider-centered Partnership for Medicaid on inside-the-beltway print advertising.