President Obama on July 17 sent a draft of legislation to Congress that would establish an Independent Medicare Advisory Council (IMAC), which would have the authority to make recommendations to the President on annual Medicare payment rates as well as other reforms.

Comprehensive health care reform legislation passed a significant milestone last week as Senate and House committees approved different legislative packages. At the same time, comments from the head of the Congressional Budget Office (CBO) put a damper on the potential further progress of the legislation.

House Democratic leaders unveiled a comprehensive health care reform plan on June 19, calling for the establishment of a public health insurance program that would compete with private insurers to lower costs. The proposal would create a Health Insurance Exchange to provide a functional marketplace for individuals and small employers to comparison shop among private and public insurers.

Few details of how the plan would be paid for were announced, and lawmakers said they were awaiting estimates from the Congressional Budget Office.

Members of both the House and the Senate have released draft summaries or draft legislative language for comprehensive health care reform legislation. Staff members of three House committees -- Ways and Means, Energy and Commerce, and Education and Labor – released a three-page summary of a possible health care reform bill that includes a public insurance option, insurance market reforms, and insurance premium support for families up to 400 percent of the federal poverty level.

President Obama is looking at making the recommendations made by the Medicare Payment Advisory Commission (MedPAC) each year easier to put into effect. In a letter to Sens. Edward Kennedy (D.-Mass.) and Max Baucus (D.-Mont.) sent June 2, Obama outlined several proposals to cut health care spending over the next 10 years, particularly in the Medicare program. 

As Congress and the Obama administration consider reform of the healthcare system, they may consider the experience

Acute care hospitals will receive a net 0.2 percent increase in payments for inpatient hospitals services in fiscal year (FY) 2010 under the proposed rule for the inpatient hospital prospective payment system (IPPS). Hospitals face a net decrease in payments in FY 2011 and 2012 under the proposed rule.

In late March the Obama administration named David Blementhal, physician and director of the Institute for Health Policy at the Massachusetts General Hospital/Partners Healthcare System as the national coordinator for health information technology (HIT). This new post was included in the recently enacted American Recovery and Reinvestment Act of 2009 (ARRA).

In his new role, Blumenthal will be responsible for determing how almost $20 billion in new funding will be disbursed over the next few years.

The Medicare Improvements for Patients and Providers Act of 2008 (MIPPA), enacted on July 15, 2008, made limited changes to the competitive bidding program for Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS), including a requirement that the Secretary conduct a second competition to select suppliers for Round 1 in 2009. 

CMS is hosting a Special Open Door Forum teleconference for Part A provider Recovery Audit Contractors (RACs) on April 8, 2009, from 2:00 to 3:30 EST. The purpose of the forum is to introduce providers to the new RACs and provide more information about the RAC program.

CMS notes that capacity is limited; participants may may begin dialing into this forum as early as 1:45 PM EST. Dial: 1-800-837-1935 and reference Conference ID 92490299.