House Democrats silence Medicare alarm, but long-term funding still unresolved

The move puts a hold on efforts to approve Medicare pay-for-performance and medical liability reform.

By David Glendinning, AMNews staff. Aug. 25, 2008.

Washington -- When the House last month voted in favor of implementing a trigger-lock measure, the lawmakers were not debating gun control regulations. They were dealing with Medicare's long-term financial future and a funding alarm that signals trouble for the program.

The House approved July 24 a resolution that effectively delays consideration of White House-sponsored legislation to reduce Medicare's reliance on general tax revenues in future years. If the chamber had not done that by July 30, President Bush's measure would have received a fast track to House floor consideration.

The Medicare funding trigger concept dates back to the Medicare Modernization Act of 2003. This measure dictated that an alarm would be tripped if the program's trustees predicted for two years in a row that the portion of total Medicare spending coming from general revenues will exceed 45% within six years. Spending on physician care, hospital care and other services are funded through a combination of general taxes, payroll taxes and beneficiary premiums.

The funding alarm was set off in April 2007 when the second consecutive trustees report projected Medicare would cross that 45% threshold. The law mandated the administration then send legislation to Capitol Hill at the beginning of the next year -- in this case 2008 -- to address the long-term funding issue. If congressional leaders did not bring that White House bill to the floor by the end of July 2008, any House member could force consideration of President Bush's measure and a floor vote.