Mr. President, we must enact the Medicare Improvements for Patients and Providers Act of 2008. This legislation is vital to ensuring that Medicare and TRICARE beneficiaries have continued access to health care. The bill will also enhance Medicare benefits. In addition, the legislation will provide additional support for Hawaii hospitals that care for the uninsured and Medicaid beneficiaries.
I hope that my colleagues who previously opposed this legislation had an opportunity to meet with their physicians, beneficiaries, and military families during the recess. If so, I hope my colleagues now understand how tremendously important it is to seniors, individuals with disabilities, and members of our armed services and their families that this legislation be enacted to protect their access to health care.
The Act will maintain Medicare physician payment rates for 2008 and provide a slight increase in 2009. If this legislation again fails to pass, doctors will be subject to a 10.6 percent cut in Medicare reimbursements for the rest of the year. This dramatic cut could severely limit access to health care for our troops and their families because TRICARE reimbursement rates are linked to Medicare reimbursement rates. Rising costs and difficulty in recruiting and retaining qualified health professionals, make it essential that we improve reimbursements to ensure that Medicare and TRICARE beneficiaries have access to health care services.
The Act will enhance Medicare benefits. It increases coverage for preventive health care services and makes mental health care more affordable. In addition, the Act provides additional help for low-income seniors to obtain the health care services that they need.
Finally, Mr. President, the legislation will provide much needed relief for Hawaii hospitals. The legislation will extend Medicaid Disproportionate Share (DSH) allotments for Hawaii until December 31, 2009.
Hawaii hospitals are struggling to meet the increasing demands placed on them by a growing number of uninsured patients and rising costs. Hawaii and Tennessee are the only two states that do not have permanent DSH allotments. The Balanced Budget Act of 1997 created specific DSH allotments for each state based on their actual DSH expenditures for FY 1995. In 1994, Hawaii implemented the QUEST demonstration program that was designed to reduce the number of uninsured and improve access to health care. The prior Medicaid DSH program was incorporated into QUEST. As a result of the demonstration program, Hawaii did not have DSH expenditures in 1995 and was not provided a DSH allotment.
The Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 made further changes to the DSH program, which included the establishment of a floor for DSH allotments. States without allotments were again left out.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 made additional changes to the DSH program. This included an increase in DSH allotments for low DSH states. Again, states lacking allotments were left out.
In the Tax Relief and Health Care Act of 2006, DSH allotments were finally provided for Hawaii and Tennessee for 2007. The Act included a $10 million Medicaid DSH allotment for Hawaii for 2007. The Medicare, Medicaid, and SCHIP Extension Act of 2007 extended the DSH allotments for Hawaii and Tennessee until June 30, 2008. This provided an additional $7.5 million for a Hawaii DSH allotment.
This additional extension in the Medicare Improvements for Patients and Providers Act of 2008 authorizes the submission by the State of Hawaii of a state plan amendment covering a DSH payment methodology to hospitals which is consistent with the requirements of existing law relating to DSH payments. The purpose of providing a DSH allotment for Hawaii is to provide additional funding to the State of Hawaii to permit a greater contribution toward the uncompensated costs of hospitals that are providing indigent care. It is not meant to alter existing arrangements between the State of Hawaii and the Centers for Medicare and Medicaid Services (CMS) or to reduce in any way the level of federal funding for Hawaii's QUEST program. This Act will provide $15 million for a Hawaii DSH allotments through December 31, 2009.
These DSH resources will strengthen the ability of our providers to meet the increasing health care needs of our communities. All states need to benefit from the DSH program. This legislation will make sure that Hawaii and Tennessee continue to have Medicaid DSH assistance.
I will continue to work with Chairman Baucus, Ranking Member Grassley, Senators Alexander, Corker and Inouye to permanently restore allotments for Hawaii and Tennessee. However, we need to enact this legislation to continue to help our struggling hospitals.
Mr. President, we must enact this legislation. It will protect access to health care for seniors, individuals with disabilities, and members of our armed services and their families. The bill will improve Medicare benefits and provide much needed financial assistance for hospitals in Hawaii that care fore the uninsured and Medicaid beneficiaries.
Thank you, Mr. President.
