Health Care Debate Continues in Congress

KMA Principles Would Benefit Kentuckians

On Thursday, July 16, 2009, the US House of Representatives

Ways & Means Committee passed HR 3200, the America’s

Affordable Health Choices Act. It is one of the proposals

currently making its way through the legislative process in

regard to health care reform.

The legislation, as passed by the committee, provides for a

fix to the pending cuts to physician Medicare reimbursement

scheduled January 1, 2010, and contains more favorable

expenditure targets for Medicare physician updates. It also

provides for the creation of a health insurance exchange that

would provide a choice of plans -- including a public plan option

-- as well as a ban on physician-owned hospitals.

It is anticipated that there will be many other proposals for

health care reform in both the House and Senate over the

coming weeks. The KMA has not endorsed any health

reform bill, but does support principles that will provide

changes to the system that will benefit all Kentuckians. These

principles include:

• Repeal of the SGR formula, avoiding the anticipated

20% cut in Medicare reimbursement based on the current

formula, and the creation of a system that more accurately

reflects the cost of operating a physician’s office.

• Meaningful medical liability reform that will reduce the

high cost of defensive medicine.

• Ending health insurance companies’ subsidies under

the Medicare Advantage program and using that money

to fund other proposals, including a fix to the SGR.

• Health insurance reform that reduces the administrative

burden on patients and physicians and reduces the

barriers to obtaining insurance and health care services

for patients.

• Anti-trust relief that allows physicians to negotiate on a

level playing field and allows them to work with others in

the health care delivery system to increase efficiencies in

the delivery of health care that are so badly needed.

KMA urges its members to communicate these principles to

their Congressmen and Senators over the coming days and

weeks as the debate in Congress continues over health care

reform.