[Congressional Record Volume 148, Number 128 (Thursday, October 3, 2002)]
[Senate]
[Page S9907]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH:
  S. 3041. A bill to require the Secretary of Health and Human Services 
to conduct a study and submit a report to Congress on new technology 
payments under the Medicare prospective payment system for hospital 
outpatient department services; to the Committee on Finance.
  Mr. HATCH. Mr. President, since Utah is the home of many medical 
device and pharmaceutical companies, I have taken a special interest in 
legislation affecting the development of cutting-edge technologies and 
the ability of patients to have access to these innovative products. 
Three years ago, I authored legislation to ensure that Medicare 
patients have prompt and appropriate access to the abundant benefits of 
medical breakthrough products. Prior to the enactment of that law, 
these innovative technologies were not being properly reimbursed by the 
Medicare program or, in some cases, were not even being reimbursed by 
Medicare at all. As a result, patient care suffered.
  And, while the 1999 law was a giant step in the right direction, many 
problems continue to exist regarding the methodology that Medicare has 
used in developing its hospital outpatient reimbursement payments for 
these new devices and medicines.
  I have been working throughout the year with all parties who have a 
stake in improving the hospital outpatient prospective payment system 
methodology for new medical devices, drugs, biologicals, and other 
technologies. I have listened to the arguments from both the Centers 
for Medicare and Medicaid Services, CMS, and the industry and recognize 
that there are problems with this methodology from all perspectives.
  And while, in my opinion, a legislative solution would be ideal, so 
far, we have been unable to draft legislation that would be acceptable 
to both CMS and industry representatives. Therefore, I now believe that 
authorizing a comprehensive study through the Department of Health and 
Human Services is the appropriate next step toward defining the flaws 
within the current system and developing consensus on how to address 
them. For this reason, I now advocate that CMS undertake such a study, 
and also provide recommendations to Congress on how to improve Medicare 
reimbursement for these products.
  This matter is a serious one which needs to be reviewed and analyzed 
by HHS so that a more equitable reimbursement system may be created. We 
all agree that Medicare beneficiaries deserve access to most innovative 
medical technologies. In my opinion, this HHS study will help us 
accomplish two very important goals, fair and equitable Medicare 
reimbursement for innovative technology and therapies and, most 
important, beneficiary access to these cutting-edge products.
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