I will attempt to bring some sanity and some facts into this insult-o-rama tin foil hatfest.
Please read all the way to the end so you can understand the deception Obama has pulled.
Part A of the Medicare program pays for inpatient hospital services, home health services, and nursing services. Part B pays for outpatient hospital services, doctors office visits, and various other services.
If a doctor is willing to accept Medicare patients, he or she must sign an agreement with the federal Health and Human Services department.
When a doctor provides a service, they submit their bill to an intermediary such as Blue Cross or Blue Shield.
The intermediary has all kinds of actuarial charts to tell them what the service that was rendered has cost on average in the past. If the doctor is billing within that window, the doctor gets "reimbursed" (paid). If the doctor is billing more than that, the doctor's reimbursement is "adjusted" to less than what was billed. The doctor is paid what the actuarial charts say he should be paid.
But it does not end there. At the end of each fiscal year, the doctor must submit to the intermediary a report which details his costs for the services the doctor provided that year.
If it turns out the doctor's costs were higher than what he was reimbursed, the intermediary provides the difference. If it turns out the doctor's costs were much lower than the actuarial tables predicted, the intermediary goes after the doctor for the overpayment. If the doctor tries to dodge paying back the overpayment, the intermediary takes it out of future reimbursements until the overpayment is paid back.
One of the ways Bill Clinton and Newt Gingrich's Congress balanced the budget was to reduce the amount reimbursed to doctors.
This amounted to a $115 billion cut over five years, which was a lot of money back then.
The problem is that those cuts have been rolled back every single year since then. An annual ritual known as a
"doc fix". The reason for the doc fix is simple. Doctors who take Medicare patients will drop those patients when their reimbursements for services rendered drop.
So that $115 billion "savings" was never realized.
Guess what Obama did to pay for ObamaCare?
That's right. A $716 billion dollar cut to Medicare reimbursements.
So what do you think is going to happen every single year when it comes time to make those cuts?
That's right. Doc Fix Squared.
That "cut" will never happen. The Congressman in the OP is correct. Hospitals will stop taking Medicare patients, and so will private practice doctors.
So ObamaCare is not budget neutral. Not even close. It will be at least $716 billion in the hole come 2014 when the first cuts are supposed to happen, which will so obviously be stopped.
Obama was hoping this was all too complicated for you to catch on.
Reading the insults from both sides, and the tin foil hat stuff about Agenda 21, I think he may have been correct in that assumption.
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