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Up to the minute news from the National Association of

Rehabilitation Providers and Agencies

June 13, 2003

Congressional Developments on Therapy Caps

        Congressional efforts to enact Medicare reform legislation, including a prescription drug benefit, are reaching a fever pitch. Last evening, the Senate Finance Committee completed a markup of the "Prescription Drug and Medicare Improvement Act of 2003", and reported it out to the Senate floor by a vote of 16-5. Despite extensive effort by the rehabilitation community, this bill does not include either a repeal of the therapy caps or an extension of the moratorium. While many Senators and their staffs agreed that the therapy caps are bad health policy, a repeal or moratorium would cost money that was not available given other priorities in the bill--i.e.. the Medicare drug benefit.

        During the markup, Sen. Blanche Lincoln (D-AR) raised an amendment that would have expressed the "sense of the Senate" that "Congress should alleviate the negative impact of the $1500 therapy cap." While not legally binding, sense of the Senate resolutions are helpful in positioning an issue for further legislative activity. When she raised the issue, Chairman Grassley (R-IA) asked CMS Administrator Scully if there was any way to delay implementation of the caps. Mr. Scully replied that CMS had already delayed them once and that the agency believed that it was statutorily bound to put them in place. Senator Lincoln withdrew her amendment for reasons unrelated to its merits.

        The Senate Finance Committee bill will be taken up on the Senate floor on Monday, June 16, 2003 where it is scheduled for two weeks of debate. The Senate leadership wants to pass the bill before the 4th of July recess.  The rehabilitation community is exploring options for the Senate floor including an amendment, sense of the Senate resolution, or colloquy between the repeal bill's sponsors and the floor manager of the bill (Sen. Grassley).

        Legislative language has not yet been released by the House Ways and Means Committee and the House Energy and Commerce Committee. It may be made available today. However, we are informed by staff that the bill includes a one-year additional moratorium on the therapy caps. Staff confirmed this as recently as 1:30 a.m. this morning. The task before the rehabilitation community is to ensure that this provision remains in the bill and that it survives the conference between the House and Senate. The Ways and Means Committee will begin markup of the bill on Monday, June 16th and the Energy and Commerce Committee will begin the next day. House Leadership intends to have the legislation on the floor of the House the week of June 23rd and passed before Congress leaves for the 4th of July break.

        WE ARE AT A CRITICAL JUNCTURE IN THE LEGISLATIVE PROCESS AND COMMUNICATIONS FROM CONSTITUENTS ARE CRITICAL. CALL YOUR CONGRESSMAN AND SENATORS NOW AND TELL THEM THAT YOU NEED RELIEF FROM THE CAPS. IF YOU'VE CALLED BEFORE, CALL AGAIN. IF YOU HAVEN'T CALLED, NOW IS THE TIME!

 

George G. Olsen, Esq.
Williams & Jensen, P.C.
1155 21st Street, NW
Suite
300

Washington, DC 20036

Phone: 202-659-8201
Fax: 202-659-5249
email: [EMAIL PROTECTED]
www.williamsandjensen.com
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