Legislation may rid Medicare system of inequities U.S. Senators Susan Collins, R-Maine, and Russ Reingold, D-Wisconsin, authors of Medicare fairness legislation, hold a news conference Monday at the Bellin Health Executive Office building, 2020 S. Webster Ave. (photo by Tina Gohr). Wisconsin stands to receive higher reimbursement payments By Monique Balas News-Chronicle U.S. Sens. Russ Feingold, D-Wis., and Susan Collins, R-Maine, announced at a Monday that some of their remedies for an ailing Medicare distribution system have been included in the Senate's version of the prescription drug bill. Currently, Medicare reimbursement rates differ according to the region of the country. Urban health care providers typically receive more than rural providers for the same type of care, but the senators' legislation provides a dose of equity for the states they represent. Collins said because Wisconsin and Maine typically provide lower-cost health care to seniors, they are unfairly penalized. "In states like Wisconsin and Maine, seniors pay the same premiums and co-payments, yet our patients receive far less from their reimbursements," she said. "It's simply not fair that Medicare's reimbursements favor largely urban areas and not rural. The system is backwards." The legislation would be good medicine for Bellin Health, said CEO and president George Kerwin. "Medicare reimbursement is better in other states for cost and quality," Kerwin said. "Thanks to the leadership and perseverance of Sen. Feingold and Sen. Collins and the Medicare prescription drug deal, this inequity is ending." St. Vincent Hospital also supports the legislation, said Jim Reck, director of marketing and communications. "Clearly something needs to be done with the inequities in the distribution," he said. "We support efforts to find ways to make Medicare better reflect the cost of the services provided." Although the bill primarily affects health care providers, it can indirectly affect numerous other areas. "An increased payment rate by Medicare is translated into higher payment rates for non-Medicare," said Ann Lucas, vice president of external relations for the Wisconsin Hospital Association, said non-Medicare patients might not have to unfairly shoulder the cost of healthcare under the bill. When hospitals are not fully reimbursed, they might pass the cost on to other patients. Responding to a question about how people with employer-paid benefits might be affected, Feingold said, "The businesses end up having to pay more. Their insurance rates go up. It has a domino effect on the entire economy." Paying for Medicare shortfalls could increase health insurance premiums for employer-paid systems. "There's no choice but to shift the shortfall," Collins said. Wisconsin and Maine have some of the highest insurance rates in the nation, said Tom Schoffelman, Bellin public relations director. "A lot of that has to do with the Medicare shortfall, trying to balance how to make up for that," he said. The bill would create a standardized reimbursement sum for the entire country based on what is paid in urban areas. Kerwin said Bellin Health could get an extra $706,000 in revenue this year if the legislation's provisions are approved. Wisconsin Medicare beneficiaries receive an average of $3,795 in benefits per year, whereas the highest-ranking state receives an average of $6,720. "If the Senate version of Medicare were to pass in its current form, it would mean more than $250 million over the next 10 years for Wisconsin," Feingold said. The bill would mean more money for prescription drugs, he added. "The good news is, it's $400 new billion for prescription drugs over 10 years," Feingold said. "The bad news is, it doesn't go very far." The bill must now go to conference committee, where members of the House and Senate will work out differences in their versions of the drug prescription bills.