Kay Granger: “I stood behind the Balanced Budget Act when it was passed in 1997. We all believed it was a good bill that addressed…”

“I stood behind the Balanced Budget Act when it was passed in 1997. We all believed it was a good bill that addressed fraud and abuse in Medicare billing. But now, 3 years down the road, we are seeing unintended consequences of this bill. In 1997, Congress estimated the Balanced Budget Act would cut $116 billion in fraudulent Medicare payments. Current projection, however, estimate $227 billion in cuts. These cuts, almost double the original projection, go well beyond fraud and abuse. These cuts threaten vital hospital services. Walls Regional Hospital in my district serves a growing but primarily rural area, Cleburne, Texas. The hospital recently expanded its Skilled Nursing section from 12 to 25 beds. Just as Walls finished their expansion, the Balanced Budget Act reduced the reimbursement rate for skilled nursing by 70 percent, a loss of a million dollars a year for Walls. Today, despite community needs, the Skilled Nursing facility is down to 11 beds. It is stories like this that remind us to prioritize our Nation's health services. Mr. Speaker, it is time for Congress to administer first aid to our hospitals.”