WASHINGTON, D.C. — Today Congressman David Wu joined other members who are part of the Quality Care Coalition to announce that real Medicare payment reform will be part of the health care reform bill.

The agreement with House leadership accomplishes two important goals in health care reform:

1)    It will move Medicare reimbursements from a volume-based, fee-for-service model to one that ensures that quality, value-based care is rewarded.  The language puts in place reform through an Institute of Medicine study that establishes recommendations for changes in the payment system that reward value and quality and that would go into effect automatically unless rejected by both chambers of Congress.

2)    The legislation also requires that the Institute of Medicine study the causes for the geographic variations in compensation in Medicare reimbursements for both physicians and hospitals, and requires the Secretary of Health and Human Services to implement changes in Medicare reimbursements that take into account the IOM's findings.

Congressman Wu’s statement is as follows:
    
“Health care reform of this magnitude is a generational opportunity.  I am very proud to support this agreement between my fellow members and leadership that will produce real, honest reform in this bill.  

“Oregon is one of a number of states whose doctors receive Medicare reimbursements at rates far below the national average, despite delivering excellent and efficient care.  Physicians across the state are suffering under these low rates, being paid for only a fraction of their overall costs every time they see a Medicare patient.

“The shift to a Medicare payment system that is based on high-value care means we will move away from the volume-based system that has exasperated geographical disparity in payments to our physicians, leading to millions of American seniors not being able to find a doctor.  

“This legislation not only rectifies a grave injustice, it prevents the expansion of unjust policies to millions of additional Americans.  This is a landmark shift in policy.”