Hi Jody,

Please check out the latest update on AOTA's webpage.  If you haven't contacted your 
legislators about this issue, please do so soon.

"WARNING! Medicare $1500 Cap in Serious Jeopardy
Keep the Pressure on Congress - Updated 11/8/2002"

http://capwiz.com/aota/issues/alert/?alertid=594501&type=CO

Elections and Senate Change Have Major Impact on Medicare - $1500 Cap.

Changes in the House and Senate will have a significant impact on the occupational 
therapy profession and the current legislative agenda for AOTA. As a result of the 
November 5 elections, the House will remain in Republican control while the Senate 
switches to Republican control. Because of peculiar circumstances some changes take 
place immediately rather than when the 108th Congress is sworn in on January 2, 2003. 
For instance, Minnesota now has an appointed Senator who is an independent, changing 
the balance of power in the Senate effective immediately. 

As of "press time," the Congress will be returning to Washington November 12 for a 
"lame duck" session to wrap up appropriations for the current federal fiscal year 
(including the Individuals with Disabilities Education Act programs, transportation 
programs including the older driver initiative, and health professions training 
programs). Congress will also be attempting to establish the Homeland Security 
Department which was not done prior to the elections. 

The big question is whether Congress will tackle Medicare provisions for payment 
changes for hospitals, skilled nursing facilities, home health agencies, physician and 
other professional payments, and other corrections such as the delay on implementation 
of the $1500 annual cap. Republicans may want to delay any action until the 108th 
Congress on any controversial issue. Because there were many promises about a 
prescription drug benefit for Medicare beneficiaries during campaigns, any action on 
Medicare now without attention to drug coverage may create problems. 

Calls and emails to House and Senate urging passage of a repeal of the cap are still 
important this week.

Background Prior to Elections on November 5, 2002:
While the House passed a bill (H.R. 4954) with Medicare changes that includes another 
two-year moratorium on the $1500 cap on outpatient rehabilitation services (including 
occupational therapy services) early in the summer, the Senate was never able to get 
an agreement on a prescription drug approach. Because many Senators wanted to take 
action on prescription drug coverage, they stopped action on a smaller Medicare 
package that would have included a two-year cap moratorium among other changes. 
Further complicating action was the position of the Bush Administration, which was to 
support only funding for Medicare managed care and the physician fee schedule, 
ignoring home health, skilled nursing, and hospitals, as well as the cap. The American 
Association of Retired Persons (AARP) muddied the waters with a challenge that they 
would oppose any Medicare changes without a prescription drug benefit.

While AOTA has no position on a Medicare drug benefit, AOTA is clear that changes and 
improvements to the Medicare program can not be held up waiting for an agreement on a 
drug package.

All AOTA members are urged to call their Representative in the U.S. House of 
Representatives and both of their U.S. Senators and urge them to take action on 
Medicare as soon as they return to Washington. Advocacy on these issues may be needed 
for several weeks—even into December—until Congress adjourns. (Sample phone message 
below).

At stake are many time-sensitive issues that should be mentioned in calls:

The cap on outpatient rehabilitation will go back into effect on January 1, 2003 
without Congressional action. 

Payments for occupational therapy and physician services under Part B will be reduced 
on January 1, 2003 without Congressional action. 

Payments for skill

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