[Congressional Record Volume 143, Number 147 (Tuesday, October 28, 1997)]
[Extensions of Remarks]
[Page E2099]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   SUPPORT GROWS FOR CARVE-OUT OF DISPROPORTIONATE SHARE COSTS FROM 
      PAYMENTS TO H.M.O.'s MEMBERS INVITED TO COSPONSOR H.R. 2701

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                       Tuesday, October 28, 1997

  Mr. RANGEL. Mr. Speaker, on Wednesday, October 22, five of us 
introduced H.R. 2701, a bill to ``carve out'' disproportionate share 
hospital [DSH] payments from the amount Medicare pays managed care 
organizations, and provide it directly to the DSH hospital when an MCO 
patient uses that DSH hospital.
  Today, I am adding Representatives Matsui, Coyne, and McDermott to 
the list of cosponsors.
  To help explain the purpose of the legislation, I would like to 
include in the Record below a press release from the American Hospital 
Association in support of this legislation ``which helps hospitals 
caring for large numbers of poor Americans.''
  I want to thank the Greater New York Hospital Association, the 
American Hospital Association, and the Healthcare Association of New 
York State for their early support.

  AHA Applauds Bill Which Helps Hospitals Caring for Large Numbers of 
                             Poor Americans

       Washington (October 22, 1997)--The American Hospital 
     Association (AHA) added its strong support to legislation 
     introduced today by Rep. Charles Rangel (NY) to ensure that 
     Medicare payments meant to help hospitals caring for large 
     numbers of low-income Americans actually reach those 
     institutions. Other original co-sponsors included Rep. Pete 
     Stark (CA), Rep. Benjamin L. Cardin (MD), Rep. John Lewis 
     (GA) and Rep. Xavier Becerra (CA).
       Within the Medicare program, hospitals that provide care to 
     a large number of low-income Americans receive special 
     payments to help serve these patients. Currently, these 
     hospital payments are included in the rates Medicare pays 
     managed care plans. Typically, these payments are not passed 
     along by plans to hospitals that provide the care. The Rangel 
     bill separates those payments from Medicare managed care plan 
     payments and directly pays them to the institutions that 
     deliver this vital care in communities.
       ``This bill gives credit where it's due,'' said Rick 
     Pollack, AHA's executive vice president. ``Nearly 1,900 
     hospitals care for large numbers of the poor and are due 
     these payments. This bill gives many hospitals the financial 
     underpinnings necessary to continue providing such quality 
     health care. It's an important step to ensure access to care 
     for the poor.''
       A similar approach was included in the recent budget bill. 
     Under the budget deal, Medicare payments to cover the costs 
     of teaching our nation's physicians are passed directly to 
     the hospitals that incur these expenses, and not folded into 
     Medicare payments to managed care plans. The AHA strongly 
     supported that measure. An AHA-supported proposal, similar to 
     the Rangel bill, was discussed during the budget debate, but 
     ultimately not enacted.
       ``We look forward to quick passage of this important 
     legislation,'' said Pollack. In addition, Pollack noted that 
     AHA will continue to seek repeal of the guaranteed 2 percent 
     increase in Medicare managed care payments to help smooth out 
     the still considerable variation in payment rates across the 
     country.
       The AHA is a not-for-profit association of health care 
     provider organizations that are committed to health 
     improvement of their communities. The AHA is the national 
     advocate for its members, which includes 5,000 hospitals, 
     health care systems, networks, and other providers of care. 
     Founded in 1898, AHA provides education for health care 
     leaders and is a source of information on health care issues 
     and trends. For more information visit the AHA, web site at 
     www.aha.org.



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