Federal Health Reform Update

March 23, 2010

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1. Senate passed bill on December 24, 2009.2. House passed on Sunday, March 21, 2010, Senate bill (219 – 212) and reconciliation bill–a package of modifications to the Senate bill per White House–congressional Democratic leader negotiations (220 - 211).3. Senate scheduled Tuesday, March 23 to take up House-approved reconciliation package (51 votes needed).

Legislative Process

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Issues Addressed in Reconciliation Package to Modify Senate-Passed Reform Bill

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Coverage Expansion-How?Over 10 Years, the Bill will Expand Coverage to 34 million–95% of all Americans–23 million will remain uncovered

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Key Hospital and Health System Provisions

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DSH Reductions

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Medicare Update Factor Reductions Increase for Hospitals

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340B Drug Discount Program

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Geographic Variation

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Wage Index

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Hospital Readmissions

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Hospital Value-Based Purchasing

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Graduate Medical Education (GME)

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Independent Payment Advisory Board

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501(c)(3) Tax-Exempt Status

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Key Hospital and Health System Pilots and Demonstrations

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Medicare Payment Bundling

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Accountable Care Organizations (ACOs)

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Medicaid Payment Demos

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Center for Medicare and Medicaid Innovation

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Additional Hospital and Health System Provisions in the Final Health Reform Package

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