Health care guide to debt limit battle

Congresss most recent spending battle left the health industry with some nicks and scratches, but its leery of having to hand over even bigger savings in the next battle looming two months from now.

From hospitals to doctors to insurers to drug makers, industry players are expecting theyll come up in the mix as lawmakers search for ways to pay for another deal to avert sequestration and increase the debt limit.

Some of the biggest ideas for cutting health care spending got pushed to the side when President Barack Obama and Congress turned their attention to cutting a smaller fiscal cliff deal. But now, Republicans say theyll insist on real spending cuts in the debt limit-sequestration fight. And if Obama continues to resist big entitlement changes, the health care industry could be in for another round of cuts.

In many ways, were kind of in the same place as before but there are just different drivers in relation to this cliff, said Rick Pollack, executive vice president at the American Hospital Association. A lot of the same issues are likely, unfortunately, to raise their head again.

Here is a guide to whats at stake for the health care industry in the next round:

Physicians

Doctors are breathing somewhat easier now that Congress has averted dramatic cuts in their Medicare payments for another year and paid for it without seriously docking them elsewhere.

Physician groups feared lawmakers would fund the doc fix by eliminating a part of the health care law that boosts Medicaid payments for primary-care services up to Medicare levels for two years. Medicaid is notorious for paying doctors low rates typically about two-thirds as much as Medicare pays which is one reason the programs low-income patients have trouble finding doctors who will treat them.

Instead, lawmakers pieced together a smorgasbord of savings that cut payments to hospitals and other providers. But that doesnt mean they wont return to the idea when the hunt is on for entitlement savings.

Temporarily increasing Medicaid payments was intended to improve access to care for low-income patients. But with a nearly $12 billion price tag, the measure offers lawmakers a source of savings if they so choose.

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Health care guide to debt limit battle

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