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News Release — Byron Dorgan, Senator for North Dakota

DORGAN PRAISES REVERSAL OF PRESIDENT BUSH'S MEDICARE CUTS

Medicare Bill will stop cuts to physician payments; promote rural health care

Wednesday, July 9, 2008

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(WASHINGTON, DC)—U.S. Senator Byron Dorgan praised the Senate’s action today to reverse President Bush’s proposed Medicare cuts, which would have put $30 million at stake for North Dakota medical providers over the next 18 months.

Senate Republicans previously filibustered and prevented passage of the bill, the Medical Improvements for Patients and Providers Act, in late June.

“Had we not acted again to overturn the Republican minority’s filibuster, there would have been substantial cuts to Medicare physician payments, and health care in rural states like North Dakota would have been put at risk,” said Dorgan. “I am pleased that we were able to get this bill passed to help strengthen Medicare for those who depend on it.”

The bill halts the cut to physician payments and provides for a modest increase, which will translate into $30 million for North Dakota medical providers in the next 18 months.

In addition to protecting Medicare, the bill also contains a $3.2 billion rural health care package, including many rural health care provisions that will benefit North Dakota. The bill extends the Section 508 provision that allows certain hospitals to reclassify to a higher wage index, meaning hospitals in Bismarck, Grand Forks, Minot and Williston will receive the same payments as Fargo. This provision will provide approximately $10 million to hospitals in western North Dakota.

The bill also extends the provision that allows rural practitioners to receive minimum payments, provides a three percent increase in ambulance coverage in rural areas, and includes a provision that provides up to $1 million in grants to Critical Access Hospitals that are transitioning to nursing homes.

Among other programs, the bill will also extend Special Diabetes Program through 2011 with $150 million per year, benefitting the Special Diabetes Program for Indians which has been shown to be very successful in helping treat and prevent diabetes in Indian Country. The Medicare bill also includes a provision that requires Medicare Part D to promptly pay pharmacies, a provision that will greatly help North Dakota’s Main Street pharmacies.

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