Although its introduction came in the waning moments of the Congress which adjourned this week, legislation that would create a more fair system of Medicare reimbursements is among the most significant developments of the year.

Friday, August 04, 2000

Although its introduction came in the waning moments of the Congress which adjourned this week, legislation that would create a more fair system of Medicare reimbursements is among the most significant developments of the year.

Minnesota is among states where Medicare reimbursements have long been unequal – and inadequate – when compared to other parts of the country. The impact on seniors and on healthcare providers of

these inequities has been significant.

That there should be differences in the rate at which medical expenses are reimbursed through Medicare has long been recognized as wrong. Although healthcare costs may vary from region to region, they do not vary to the extreme that the Medicare program seems to recognize. The result has been that Medicare users – primarily seniors – in states such as New York and Florida have been able to afford services which are simply out of reach to users in Minnesota.

But across the country, the rate at which residents pay into the Medicare system is the same. What that means is that Minnesotans and others do not get the services they pay for. There is also an impact on health care providers, who are at a disadvantage when it comes to recruiting physicians in states where Medicare reimbursements are low.

Minnesota representatives David Minge and Bill Luther have introduced legislation that would equalize Medicare reimbursements by decreasing rates in high-payment states and increasing rates in low-payment states, including Minnesota. The bills would phase the change in over a lengthy period, and the change wouldn’t be fully in effect until 2007.

Representatives from high-reimbursement states are likely to fight the measures and, indeed, the

reimbursement legislation faces a difficult road on the way to approval. To help it along its way, Minnesota representatives need to rally behind the Luther and Minge legislation. A fair system of Medicare reimbursements is a necessity.