Congress Overrides Bush Medicare Veto

HDM Breaking News, July 15, 2008

President Bush on July 15 vetoed the Medicare Improvements for Patients and Providers Act of 2008. The House and Senate the same day overwhelmingly overrode the veto.

The bill, now to become law over Bush's objections, makes several changes in Medicare provisions, including authorizing financial incentives for the use of electronic prescribing technology.

The bill calls for Medicare incentive payments for e-prescribing of 2% in fiscal 2009 and 2010, 1% in 2011 and 2012, and 0.5% in 2013. Beginning in 2012, Medicare payments to physicians not electronically prescribing would be reduced by 1%, then 1.5% in 2013 and 2% in subsequent years. The legislation also requires reporting of any e-prescribing quality measures established under Medicare’s physician reporting system. While the provisions pertain only to Medicare, other health insurers often follow Medicare and implement similar policies.

The bill’s major provisions eliminate cuts in physician fee schedules; delay cuts in Medicaid generic drug reimbursement; accelerate payments for Medicare Part D claims; hike payments to rural providers; increase funds to expand mental health parity and coverage of prevention services; and suspend the controversial durable medical equipment competitive bidding process.

Bush contended the bill would harm beneficiaries, undermine the Medicare Part D prescription drug program, and be financially irresponsible. For text of the President’s veto message to the House of Representatives on July 15, click here.

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