Bentsen Assails Idea of Further Medicare Cuts

The Bush Administration may try to slash Medicare spending by $20 billion over the next five years, a move that would jeopardize already struggling hospitals around the country, Sen. Lloyd Bentsen (D-Tex.) said Monday.

Bentsen, whose home state of Texas has led the country in the number of hospital failures since 1986, said that about half of the reduction under consideration would come at the expense of hospitals.

“Medicare cuts of the size we’re hearing about would put severe strains on the ability of hospitals to cover rising medical costs,” Bentsen, chairman of the Senate Finance Committee, said.

“I don’t see how they can propose another $20-billion cut when half our hospitals already lose money each time they treat a Medicare patient. It’s obvious to me--and to most of you--that a growing number of hospitals are simply not in a position to take another hit,” Bentsen told the American Hospital Assn.’s annual meeting.

“More than half of the hospitals in the country are losing money on Medicare patients. The Texas Hospital Assn. estimates that 70% of Texas hospitals are losing money on Medicare patients,” Bentsen said.

The Office of Management and Budget said it would not comment on details of the President’s new budget plan, due out next week. Kevin Moley, assistant secretary of health and human services, the department that administers Medicare, would say only that “the budget will be released a week from today, and that will speak for itself.”

Last year’s agreement to reduce the national deficit by $500 billion over five years included a $45-billion cut in Medicare.

As a result, hospitals will receive $17 billion less over five years, including $1.85 billion this year, Bentsen said.