“House Republicans signaled Thursday they will not follow rules in President Obama’s healthcare law that were designed to speed Medicare cuts through Congress. The House is set to vote Thursday afternoon on rules for the 113th Congress. The rules package says the House won’t comply with fast-track procedures for the Independent Payment Advisory Board (IPAB) — a controversial cost-cutting board Republicans have long resisted.”

“For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law. The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.”

“As key provisions of the Affordable Care Act (ACA) are moving closer to full implementation, the Department of Health
and Human Services (HHS) is beginning to define regulations, with the latest round of draft rules released last Friday.
Among the new regulations is a proposed 3.5 percent “user fee” to be charged to insurers that want to sell plans on the
federally facilitated insurance exchanges (FFE).”

“House Republicans will take aim at President Obama’s divisive Medicare cost-cutting board during the new Congress, Rep. Eric Cantor (R-Va.) wrote Wednesday. The alert came in a letter from the House majority leader to his GOP colleagues lamenting Mitt Romney’s presidential loss and outlining ways for Republicans to pursue tailored interests legislatively.”

“The ACA health insurance subsidies are the most significant expansion of entitlements since the 1960s. In light of the precarious fiscal outlook for the federal government, its cost is a central concern to policymakers and taxpayers alike. When the ACA passed in June 2010, the Congressional Budget Office projected the budget cost between fiscal 2012 and fiscal 2019 to be $462 billion. By June 2012, the cost for these same years had jumped to $574 billion, an increase of nearly 25 percent.”

“The Medicare Shared Savings Program, created under the Affordable Care Act, will reward participating accountable care organizations that succeed in lowering health care costs while improving performance… We used a simulation model to analyze the effects of the Shared Savings Program quality measures and performance targets on Medicare costs in a simulated population of patients ages 65–75 with type 2 diabetes. We found that a ten-percentage-point improvement in performance on diabetes quality measures would reduce Medicare costs only by up to about 1 percent. After the costs of performance improvement, such as additional tests or visits, are accounted for, the savings would decrease or become cost increases.”

“As the state’s largest safety net hospital, Hennepin treats a disproportionately large number of patients who cannot pay for some or all of their care. For more than 20 years, hospitals have relied on subsidies provided by the federal government to help defray those costs. But that funding is set to decline starting in 2014 with the full implementation of the federal health law.”

“In fact, if the president makes no appointments, or the Senate rejects the president’s appointees, then all of IPAB’s considerable powers fall to one person: the Secretary of Health and Human Services. The HHS secretary would effectively become an economic dictator, with more power over the health care sector than any chamber of Congress.”

“President Obama’s plan to control Medicare spending — an expert board of cost-cutters — might have trouble even coming into existence. Obama and Mitt Romney spent a lot of time during Wednesday’s debate talking about the Independent Payment Advisory Board (IPAB), a 15-member panel tasked with slowing the growth in Medicare spending.”

“It’s disappointing news for the architects and participants of accountable care, hoping that the alternative payment model would curb healthcare spending. A new Health Affairs study found that Medicare accountable care organizations (ACO) that improved diabetes outcomes by as much as 10 percent had little to no effect on cost savings, MedPage Today reported.”