On Feb. 2, President Obama issued the proposed budget for fiscal year (FY) 2016, which included $431.3 billion in reductions to Medicare over 10 years. The budget would also increase Medicaid funding by $7.7 billion over 10 years, although there are some program reductions proposed for Medicaid as well.
Key provisions of the proposed budget include:
For more information, contact Kathy Reep , vice president of finance, at (407) 841-6230.
- Replace sequestration with other savings opportunities
- Implement value-based purchasing for skilled nursing facilities, home health agencies, ambulatory surgical centers, hospital outpatient departments, and community mental health centers.
- Establish a hospital-wide Readmissions measure
- Eliminate the 190-day lifetime limit on impatient psychiatric facility services
- Implement bundled payments for post-acute care
- Reduce Medicare coverage of bad debts
- Better align graduate medical education payments with patient care costs
- Reduce Critical Access Hospital (CAH) payments from 101 percent of reasonable cost to 100 percent of reasonable cost
- Prohibit CAH designation for facilities that are less than 10 miles from the nearest hospital
- Modify the 60-percent rule for inpatient rehabilitation facilities (IRF) by requiring that 75 percent of IRF patients require intensive rehabilitation services
- Introduce home health copayments for new Medicare enrollees