Medicare Compliance & Reimbursement

Medicare:

FY 2003 FUNDING FINAL AT LAST

Congress tweaked some administration recommendations in the fiscal year 2003 omnibus appropriations bill. But President Bush signed the bill Feb. 20, albeit with some grumbling about the amount of spending that doesn’t reflect his priorities.

At the Centers for Medicare & Medicaid Services, Congress trimmed funding for research and demonstration programs — many of which are conducted at the legislature’s request — but didn’t trim as severely as the White House had wanted. The administration requested that funding be cut from $117 million to $28 million, but Congress funded CMS research at $74 million, higher than either the House or the Senate had initially proposed.

Congress also slightly boosted funding for CMS’s oversight of state survey and certification activities related to skilled nursing facilities, although the White House had requested a cut. Survey and certification is funded at $254 million for FY 2003, compared to the $253 million it got in FY 2002. The White House asked for $248 million.

In the conference report, Congress directs CMS to take stronger action when states fail to provide federally mandated lead screening for at-risk children and environmental investigations of the homes of lead-poisoned children under their Medicaid programs. Conferees also want a full and detailed analysis by May 30 of geographic disparities in hospital payment and the process and standards by which hospitals currently may be reclassified into higher payment areas.

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