For Release: Thursday, November 2, 2000
Contact: David Gillies: 202-225-5661

CONGRESSMAN COSTELLO CALLS ON REPUBLICAN LEADERSHIP TO PASS REAL BBA RELIEF LEGISLATION

WASHINGTON-- US Congressman Jerry Costello (D-IL) along with some of his colleagues, yesterday introduced legislation to provide real relief for hospitals, nursing homes and hospices adversely affected by the Balanced Budget Act of 1997.

"Health care providers in our area and across the nation are losing millions of dollars each year," said Costello, a chief sponsor of the measure. "We have failed health care providers, who provide vital services to patients, if Congress adjourns this session of Congress without passing this legislation."

"HR 5612 offers strong protections for beneficiaries and much needed assistance for providers, unlike the Republican passed Medicare "give back" bill which would have diverted nearly half of all its assistance to managed care companies, without any guarantee that Medicare HMOs will stop dropping benefits or abandoning seniors altogether, as has already happened in several counties in our area," said Costello.

HR 5612 includes:

* Full hospital prospective payment update for two years,
* Higher reimbursements for rural hospitals treating low-income patients,
* Nursing home staffing and quality improvements,
* Two-year delay of the 15% reduction for home health payments,
* 10% bonus payment for rural home health agencies,
* Two-year full payment update for hospice providers,
* Increased Medicaid DSH payments.

Costello cosponsored numerous bipartisan bills to aid health care providers earlier this Congress. He is hopeful the Republican leadership will bring this bill up for a vote before Congress adjourns.

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