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Centers for Medicare and Medicaid Services Sets Record for Annual Spending by a Federal Agency

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Photo Credit: APThe Centers for Medicare and Medicaid Services, which runs the federal government’s major health-care programs as well as the Obamacare insurance exchange, spent $1,113,178,000,000 in fiscal 2013, according to the Monthly Treasury Statement for September, which was released last week.

That sets a record for the most money ever spent by a federal agency or department in a single year.

It also means CMS spent more in inflation-adjusted dollars than the entire federal government spent in 1965, when President Lyndon Johnson signed the legislation creating the Medicaid and Medicare programs.

In 1965, the entire federal government spent $118,228,000,000 in 1965 dollars, according to the Office of Management and Budget. That converts to $878,824,380,000 in 2013 dollars, according to the Bureau of Labor Statistics inflation calculator.

In 2010, CMS became the first federal agency to spend more than a trillion dollars, when it spent $1,035,783,000,000. In 2011, CMS spent $1,095,406,000,000; in 2012, it spent $1,052,799,000,000; and, in 2013, it spent a record $1,113,178,000,000.

Read more from this story HERE.

Watchdogs: Government Paid Millions in Medicare to Deceased, Illegal Immigrants

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Photo Credit: APThe federal government has paid tens of millions of dollars in Medicare benefits to dead people and illegal immigrants, according to a pair of reports from federal watchdogs released on Thursday.

The Department of Health and Human Services’ Centers for Medicare and Medicaid Services paid out $23 million to beneficiaries after their deaths in 2011, according to one report from HHS’ inspector general.

Another report tallied more than $28 million in payments from 2009 to 2011 to individuals who were in the country illegally.

In all, CMS paid Medicare benefits to 4,139 illegal immigrants and 17,403 deceased people, according to the two reports.

Read more from this story HERE.

Medicare Cuts, Obamacare Prompt Hospital Layoffs

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Photo Credit: AP

Photo Credit: AP

Many hospitals are slashing jobs and cutting patient services citing Medicare cuts, the difficult health care landscape, and the Affordable Care Act as the reasons behind their decision.

Over a dozen hospitals have announced job cuts in the past three weeks, the Washington Free Beacon found. Some hospitals announced they would close altogether, while others are downsizing and eliminating some of their services.

Connecticut’s Lawrence + Memorial Hospital announced last week it was cutting 33 jobs, citing the “sheer magnitude” of payment cuts from both Medicare and Medicaid.

“L+M and other hospitals are contending with massive structural changes that are happening very rapidly,” hospital president and CEO Bruce D. Cummings said in a statement. “We are also experiencing unexpected—and previously unbudgeted—cuts in federal (Medicare) and state (Medicaid) funding. “

“The sheer magnitude of the Medicare and Medicaid cuts impel us to look at all of our services and costs, including the largest component of our budget—personnel,” Cummings said, citing a 20 percent cut in Medicaid proposed by Democratic Gov. Dannel Malloy and approved by the state legislature resulting in a $550 million hit to Connecticut hospitals. Sequestration also resulted in an additional $1 million loss for L + M this year.

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Detroit Doctor Charged in $35M Medicare Scam Gave Fake Cancer Diagnosis, Feds Say

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Photo Credit: FoxA Detroit-area doctor has been charged with bilking the government of tens of millions of dollars by deliberately misdiagnosing patients with cancer and illegally billing Medicare for the treatment.

Dr. Farid Fata will remain behind bars until at least Tuesday as a third federal judge considers whether or not to grant him bail. He was arrested last week on charges he ripped off Medicare for millions of dollars by giving chemotherapy to patients who didn’t need it and diagnosing cancer when the illness wasn’t apparent, MyFoxDetroit.com reported.

Fata owns Michigan Hematology Oncology, which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. The government says the clinics billed $35 million to Medicare over two years.

Fata earned about $24.3 million in drug infusion billings directly to Medicare, “more than any hematologist/oncologist in the state of Michigan during that time period,” FBI agent Brian Fairweather wrote in the criminal complaint.

The criminal complaint quotes co-workers and former employees as saying dozens of people passed through the office each day, although Fata spent less than five minutes with each patient and hired doctors who may not have been properly licensed to practice medicine.

Read more from this story HERE.

Medicare by the Scary Numbers

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OB-XY676_goodmaEven before the latest Medicare trustees report came out at the end of May, the White House spin masters had already crafted a story to go with it. Medicare’s finances have improved, we’re being told. The trust fund will last longer. The unfunded liability is lower. One of the reasons is said to be ObamaCare.

The core of the new health reform doesn’t kick in until next year, but already it’s improving things for seniors? Here’s the real story:

In their report, the trustees acknowledge that current law envisages dramatic reductions in future Medicare outlays which may be “difficult to sustain.” The president’s new budget also paints a rosy picture of Medicare’s present and future finances.

Yet even with these unrealistic assumptions about Medicare costs, the future looks bleak. The unfunded liability in Medicare, the trustees tell us, is $34 trillion over the next 75 years.

Looking indefinitely into the future, the unfunded liability is $43 trillion—almost three times the size of today’s economy. Based on more plausible assumptions, such as those reflected in the “alternative” scenario for Medicare produced by the Congressional Budget Office in June 2012, the long-term shortfall is more than $100 trillion.

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Obama Budget to Include Cuts to Programs in Hopes of Deal

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President Obama next week will take the political risk of formally proposing cuts to Social Security and Medicare in his annual budget in an effort to demonstrate his willingness to compromise with Republicans and revive prospects for a long-term deficit-reduction deal, administration officials say.

In a significant shift in fiscal strategy, Mr. Obama on Wednesday will send a budget plan to Capitol Hill that departs from the usual presidential wish list that Republicans typically declare dead on arrival. Instead it will embody the final compromise offer that he made to Speaker John A. Boehner late last year, before Mr. Boehner abandoned negotiations in opposition to the president’s demand for higher taxes from wealthy individuals and some corporations.

Congressional Republicans have dug in against any new tax revenues after higher taxes for the affluent were approved at the start of the year. The administration’s hope is to create cracks in Republicans’ antitax resistance, especially in the Senate, as constituents complain about the across-the-board cuts in military and domestic programs that took effect March 1.

Mr. Obama’s proposed deficit reduction would replace those cuts. And if Republicans continue to resist the president, the White House believes that most Americans will blame them for the fiscal paralysis.

Besides the tax increases that most Republicans continue to oppose, Mr. Obama’s budget will propose a new inflation formula that would have the effect of reducing cost-of-living payments for Social Security benefits, though with financial protections for low-income and very old beneficiaries, administration officials said. The idea, known as chained C.P.I., has infuriated some Democrats and advocacy groups to Mr. Obama’s left, and they have already mobilized in opposition.

Read more from this story HERE.

Hypocrite-in-Chief: Blaming Sequester, Medicare Cancer Patients Turned Away While Obama Gives $1.2 Billion to Green Energy

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Photo Credit: Sarah L. Voisin

Cancer clinics across the country have begun turning away thousands of Medicare patients, blaming the sequester budget cuts.

Oncologists say the reduced funding, which took effect for Medicare on April 1, makes it impossible to administer expensive chemotherapy drugs while staying afloat financially. Patients at these clinics would need to seek treatment elsewhere, such as at hospitals that might not have the capacity to accommodate them.

“If we treated the patients receiving the most expensive drugs, we’d be out of business in six months to a year,” said Jeff Vacirca, chief executive of North Shore Hematology Oncology Associates in New York. “The drugs we’re going to lose money on we’re not going to administer right now.”

After an emergency meeting Tuesday, Vacirca’s clinics decided that they would no longer see one-third of their 16,000 Medicare patients. “A lot of us are in disbelief that this is happening,” he said. “It’s a choice between seeing these patients and staying in business.”

Some who have been pushing the federal government to spend less on health care say this is not the right approach.

Read more from this story HERE.

To read about the $1.2 billion giveaway to green energy companies, click HERE.

Madness: Medicare to Now Pay For Sex-Change Operations

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Photo Credit: dualdflipflop

For the first time since 1981, when it dubbed sex-change operations “experimental,” Medicare has opened the door to covering transexual operations, adding to the growing list of operations that would be allowed under Obamacare.

Acting on a new request, the Centers for Medicare & Medicaid Services said it is starting a new analysis that could lift the spending ban for sex-change operations with a goal of making a decision two days after Christmas and on the eve of Obamacare kicking in Jan. 1.

A 30-day public comment period just opened on the proposed “National Coverage Determination.”

“Surgical Treatment for Gender Identity Disorder, formerly referred to as transsexual surgery in 140.3, is currently noncovered under the Medicare Part A and Part B programs. The existing policy, which became effective in 1981, states that transsexual surgery is considered experimental,” said the notice just posted on the CMS.gov site.

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Obama Administration Plans To Cut Medicare Advantage Reimbursements

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Photo Credit: AP

The Obama administration is planning new cuts to Medicare, a federal regulatory filing reveals, cuts that could mean higher premiums or seniors losing their coverage altogether.

The new cuts come in the form of a planned reduction in the reimbursement rates the government pays to insurance companies that operate Medicare Advantage plans, which are services administered by private for-profit or non-profit providers that offer additional services than can be found in traditional Medicare.

In a Feb. 15 regulatory filing, the Centers for Medicare and Medicaid Services (CMS) announced the surprised rate cuts of 2.3 percent – meaning it would pay health care providers 2.3 percent less for providing services to patients.

CMS said it was cutting payments because it foresaw the overall costs of the Medicare Advantage program shrinking by 3.2 percent, despite the fact that health care costs – the driver of all federal health care program costs – are only rising.

Medicare Advantage is like traditional Medicare except that its plans are administered by insurance companies, who are paid a per-enrollee reimbursement fee by the government. If insurance companies can provide care to seniors at less than what the government pays them for it, they make a profit.

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No, Obama Has Not Offered A Plan On Entitlements

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Photo Credit: Mark WilsonDuring a Friday news conference, a reporter asked President Obama whether he had any responsibility for the onset of the automatic spending cuts that he has warned will be devastating for the nation. “The problem that we have is a long-term problem in terms of our health care costs and programs like Medicare,” Obama said in his response. “And what I’ve said very specifically, very detailed is that I’m prepared to take on the problem where it exists — on entitlements — and do some things that my own party really doesn’t like — if it’s part of a broader package of sensible deficit reduction.”

Obama is correct that entitlements in general and health care programs in particular are the biggest source of the nation’s long-term fiscal problems. But it’s a complete falsehood that he’s offered detailed and specific plans to do something about it.

At various times during his presidency, Obama has vowed to tackle the nation’s entitlement programs. It’s true that his health care law did cut projected Medicare spending by about $700 billion over a decade. But those projected savings, along with tax increases, were used to offset $1.7 trillion in new health care spending under Obamacare rather than go toward debt reduction. In other words, they don’t fix any of the program’s structural fiscal problems.

Since Republicans took over Congress in 2011, Obama has consistently said he’d be willing to address entitlements if Republicans agreed to raise taxes — but he’s either spoken vaguely about this willingness or offered proposals that represent minor tweaks to the programs rather than fundamental changes that would put them on a sustainable financial trajectory. For instance, during the “fiscal cliff” debate, Obama floated the idea of changing the measure of inflation used to calculate Social Security benefits — a move that the Congressional Budget Office estimated would save $127 billion over a decade.

Read more from this story HERE.